Our Tips For Buying Off-The-Plan Property
Gone are the days when buying off-plan was a no-go zone. However as speculated, off-plan buying is making a comeback this year.
Here are our initial tips to help your decision making process when considering off-plan purchases:
Choose your property agent wisely
Some agents are renowned in the industry for wining and dining their potential clients, flying them to development sites and putting them up in 5-star hotels in order to have them seal the deal. What’s in the fine print is that these costs are packaged into the purchase price of the property. Do your research into agents that are genuine and honest about where you should be investing.
Buying off the plan is cheaper than ready property
Chances are that you have probably seen fantastic images of a property at an even better-looking price… Chances are that it’s probably an off-the-plan sale. Buying off-the-plan basically means entering into a legally binding contract to purchase a property before it reaches the stage of final development and occupancy approval.
When you an invest in a off-the-plan property, you can enjoy tax depreciation benefits, government incentives and the ‘newness’ of a new property without paying the market premium.
First home buyers around Australia receive exemptions and concessions of stamp duty for properties purchased off-the-plan. They can also enjoy government grands.
Buying property off-plan allows you to arrange your finances better and means that you don’t have to be lumbered with a loan for the whole amount of your property. There are also advantages to buying a ready property: with house prices down in certain areas, coupled with tricky off-plan mortgage rules, there has been a boom in ready property sales. However, it is generally cheaper to buy off-plan and that gap is expected get bigger as developers work to drive interest in off-plan investment.
Knowing the market
This comes down to research, you may think you that have found a good deal but many people don’t understand that market price fluctuation and further housing developments may ultimately impact the resell value of your property once it is completed.
At IPPA, we cant say this enough the key is research and knowing whats planned in the area where you intend to buy. Are high-rises being built? Are there subdivision and land grants? This ultimately comes down to supply and demand.
Be sure you are aware of the issue with quality
A common complaint we have heard from buyers who have had an off-the-plan dispute has been related to the quality of fittings and a gap between expectations and reality. Be sure to know what will happen if an item is out of stock or unavailable and question whether it will be replaced with an item of equal value and quality etc.
IPPA Australia can help you in this exciting and beneficial process. We are professionals who know about the current Australian property market and want to find you the best deal. We want to give you the best advice so you can avoid the risks at all costs.