Buying off the plan
Purchasing property off the plan, means you are buying before it is built. This type of transaction offers many advantages for investors, making it an increasingly popular way to accumulate property.
Some benefits of this type of purchase include:
- Buying at prices in today's market. This means by the time your property settles, the value may have greatly increased, providing instant capital gains and greater rental yields.
- Investors are able to claim greater tax deductions due to the ability of maximising depreciation. Not only can they claim the maximum period, but they are able to depreciate fittings as well as the building.
- Final payment for the property is due once completed and titles are issued. This provides buyers with more time to arrange their finance whether it be saving, selling, or refinance existing properties they may have.
- Ability to acquire a brand new, inner city property, generally speaking is normally more expensive to purchase or rent a completed home within an inner city area than purchasing off the plan. It gives people the opportunity of securing property in an area they may not have been able to otherwise afford.
- The appeal of having a brand new property. For investors this usually means less maintenance issues, and an investment that tenants will find more attractive. This can result in a better rental rate, decreased periods of vacancy, and also better quality of tenants.