An off-the-plan apartment is a great option for first home buyers to get a foot in the door, and for downsizers to ease into their retirement. Here’s what to expect when buying off-the-plan and how to save money on your investment.
What does off-the-plan mean?
Off-the-plan means you are buying a property based on the plans for it to be built. Building may be yet to commence or partially underway when you choose to invest. You are only required to make an upfront deposit – typically 10% – with the rest of the cost being paid upon completion. Off-the-plan projects give you time to plan your living and financing arrangements in advance making this type of property purchase easy for first time investors, new homeowners and downsizers.
Tips for buying an off-the-plan property
The process for buying off-the-plan is different to buying an existing home. Here are our top tips for an off-the-plan purchase:
Visit the property location
Just like with an established property, the location is half the value. Visit the build site if possible or at least find out the address so you an explore the surrounds and ensure you’re happy with this area.
Inspect a display home
Get as much detail on the final property as you can. If there’s a display home – visit it, if there are plans – get copies. While the display home will be true to the fixtures and finishing’s, it may differ to the final property you’ve purchased. Compare the layout with your individual plans before committing for good.
Discuss inclusions with your developer
Find out exactly what is covered in the purchase price and what may be at your own cost. For example, not every off-the-plan includes all appliances like your fridge.
Benefits to off-the-plan
There are multiple benefits to buying off-the-plan, some which can help you save money. Our top four are listed below:
- The WA government recently introduced a stamp duty rebate of up to 75% on off-the-plan apartments
- If this will be an investment property, then you may be eligible for tax deductions. One way to find out if you’re eligable for tax deductions is to seek advice from your accountant.
- You’ll save on renovations and maintenance costs as everything is brand new, and typically under warranty, which also gives investors the tax benefits of depreciation. Check with your accountant to what tax benefits you may be entitled to.
- You can lock in affordable, market prices now and increase your investment, if property market prices increase in the locations during the developers sales and construction phase
Find an off-the-plan investment with Norm Carey
Norm Carey has decades of experience developing properties and are constantly creating new projects throughout Australia. If you’re interested in an off-the-plan purchase around Perth – ask our team for details on our latest and upcoming projects.