Off-the-plan property investment can be extremely attractive for property investors, especially in Melbourne where investors can make significant Stamp Duty savings, due to a number of important factors.
Buying property ‘off-the-plan’ is basically purchasing a property prior to completion or before building has even started. There are several advantages to buying investment property this way. Benefits can include substantial tax breaks, advantages in terms of choice of property and prospects for re-design, paying current market price for a property that will be completed in the future, fixed price contracts, opportunities for delayed settlement allowing the investor time to save for a larger deposit and prepare for future mortgage repayments, Stamp Duty savings in certain states (especially Melbourne), receiving the maximum depreciation benefits applicable to the property and opportunities to on-sell the property before settlement has been formally finalized.
As with most investments it pays to do your research when considering buying off the plan. Projects that do not proceed or start late, projects that do not turn out as you expected, capital growth projections which fail to meet expectations or fall well below the mark, developers who experience financial difficulty, bankruptcy or even liquidation may hold up the project’s completion as well as jeopardizing your financial investment
Property experts recommend having all contracts thoroughly reviewed by your legal advisors as well as yourself. Items which should be reviewed in property contracts include: floor and building plans, site plans, electrical plans and a comprehensive list of all contractual inclusions, fixtures and fittings as well as quality levels of each. These may include lighting, landscaping, security details, appliances, heating and cooling, wall and floor finishes etc.
Property Investor has listings for some of the best off the plan apartments currently available. Click onto the website, select your property type and start searching to find your next property deal.