September 09, 2015
Projects take centre stage
Development projects are a major part of real estate sales in Boroondara and Jellis Craig has been responsible for finding buyers for many quality developments.
The Jellis Craig Projects team is committed to bringing to market only the best developments that showcase the highest standards of craftsmanship, a desirable location and offer the opportunity for long-term investment returns and premium owner-occupier lifestyle.
Nick Elmore from the Projects team says there is strong buyer demand for developments, from downsizers looking for a low-maintenance lifestyle with all the bells and whistles, to young corporate couples seeking high-end features, fixtures and fittings.
“We are judicious about the developers we partner with,” says Nick. “We will only get involved with projects that meet all our strict criteria.”
For those considering a move to a new development, here are some of the key benefits of purchasing a property off the plan:
• Significant stamp duty savings. This is because sales duty is payable on the value of the property. At the very early stages of a development there is little or no capital improvement – stamp duty is just calculated on land value only. On the sale of a property between $600,000-$1,000,000 bracket, this can mean a stamp duty saving of between $40,000-$50,000. Stamp duty savings continue throughout the building process, but decrease as the building nears completion.
• Longer timeframe to get finances together. Once the initial deposit is paid, there may be a year or more before the building is finished. This gives buyers time to organise settlement funds and/or save.
• Collaborating on the interior fit out of your property. Depending on what stage you buy off the plan, and the flexibility of the developer, there are often opportunities to request specific features to personalise your property.
• Instant depreciation claims. Your financial advisor will be able to provide full details of what can be claimed at tax time, but depreciation is often an attractive benefit of an off-the-plan purchase.
• High rental returns. Demand is often higher for brand new apartments, which therefore attract a premium monthly rental as compared to older properties. Combined with fewer outgoings (i.e. maintenance costs), this makes buying off the plan attractive for many investors.
If you are interested in knowing more current Jellis Craig projects, our team has an exciting range of current development across Boroondara, Stonnington and the wider Melbourne area for your consideration.