If you have decided to buy an off the plan property, you may be wondering if you have made the right choice.

One of the main advantages of buying apartments off the plan is they are brand new. You have the freedom to make your own choices. So, is it safe to buy off the plan property? Let us assure you, investing in off the plan units, apartments and townhouses can be a little bit scary, but there are many benefits.

Off the plan deals can be more profitable and flexible than you think. Surprisingly, there are many financial benefits, so let us break them down for you. In this article, we will discuss five reasons why buying off the plan makes a great investment.

1. Stamp Duty Concessions

One of the significant benefits of buying an off the plan property is that you spend a lot less on stamp duty. It is significantly less when compared to buying a fully completed project. So, in other words, you make huge savings. You can save some thousands of dollars on off the plan purchases.

Some states also provide special incentives for first home buyers purchasing a new property priced below a certain amount. It is called the First Home Owners Grant (FHOG), and If you qualify, you can reap some additional discounts on stamp duty. And there is also extended payment periods for some eligible buyers. 

2. Tax Benefits

You have full advantage of depreciation tax benefits if you buy an off the plan house as an investment, leasing it to a renter. You can use depreciation to deduct the purchase price along with the improvement costs from your tax returns. In other words, depreciation works by deducting the purchase cost and improving the life of a rental property. It reduces the ongoing costs of owning a property.

So, if you are an investor, you can claim depreciation for both the purchase costs (decline in value of the building) as well as your home’s assets. Home assets include all your home’s fixtures and fittings. You can claim depreciation deductions as soon as the property settles. Therefore, again you make ample tax savings here.

3. Potential Capital Growth

Another key benefit of buying an off the plan house or apartment is that you will be purchasing it at today’s price. Precisely, you are paying the current market value of the property, even though it will be completed and handed over in the future. History shows over time property prices increase, although no one can predict when and at what rate the likely hood of an increase in value is a reasonable assumption.

4. Buys Time To Save

Buying an off the plan property usually requires you to pay only 10% of the purchase price as an initial deposit, you are now on the way to become the owner of a brand new home. You can pay the rest of the purchase price once the project is complete and ready to settle. So, it gives you ample time to arrange for finances or make savings for the subsequent moving charges. Either way, it gives you some time for planning and getting things off right. 

5. Low Maintenance and Power Bills

Off the plan purchase also helps you save on certain expenses otherwise inescapable. To begin with, you will likely find no need to renovate or repair anything in your brand new home. There’s no costly maintenance cost in off the plan purchase. Also, most of the new developments readily meet the rigorous energy efficiency requirements of Australia. Therefore, you are more likely to enjoy lower power bills, and that’s a considerable saving too.

Moreover, you can choose a unit according to your likes and needs. In addition, some developers also give you the freedom of choosing finishes and fixtures. Above all, it’s brand new.

Are you looking for off the plan land and house packages in Australia? Perhaps you’re on the hunt for new apartments, townhouses, or units? Begin your search with us. We bring you the best off the plan properties and deals in NSW, Victoria, Queensland, Western Australia and across Australia.