When most people start looking for a property they are already ready to buy. The quick-buy approach, however, is a recipe for investment disaster.
Every purchase you make is an important addition to your portfolio, that needs to be carefully considered over time.
Waiting for your next property to be built off-the-plan has many advantages you may not know about, including:
1. Less Maintenance & More Rent
Newer properties are a lot more appealing to renters, so you’ll be able to lock in a firmer rental return. And, aside from luring prospective renters with a fresh looking property, you’ll also be able to save on maintenance costs and keep your tenants happy with a building that doesn’t need repair.
2. Fixed Price Customisation
Additions and renovations to existing homes very rarely go exactly to plan. It’s natural for refurbishing budgets to stretch and deadlines to get missed. When you buy off-the-plan, however, you can build the house you’ve always dreamed of with the assurance of a fixed price. You can choose what you want and have it ready when you want, from colours to fixtures, finishes, and even the location within the community or apartment building, it's up to you.
3. Energy Efficiency
These days, there are strict energy usage requirements in place for all new homes. Buying new allows you take advantage of all of the incredible advancements in modern construction technology from the get go. With an off-the-plan home, you won’t have to worry about paying for additional efficiency measures like insulation, energy saving lights, or a new hot water system, because your home will already be performing at peak condition as soon as you walk in.
4. Warranties
Brand new homes are sold with a seven-year builder’s guarantee. This covers structural and interior building faults throughout both the inside and the outside of the house.
5. Easy Market Entry for First Time Buyers
Many companies selling off-the-plan properties require lower upfront deposits – typically around 10% - and the balance at settlement. While construction is underway, first time home buyers have around 18 months to 2 years to save more money to put towards their mortgage deposit, moving costs or furnishing the house. And, if the property increases in value during this period, you’ll get some nice passive equity growth.
6. Planned Parking
While parking is a non-issue for many people living outside of major cities, in some areas, the availability of parking (and the likelihood of people parking you in on a regular basis) can make or break a buying or renting decision. New residential communities and apartment blocks are planned to accommodate all the traffic needs of their residents, so you won’t be stuck circling the block for a park every day.
7. Save on Stamp Duty
If you buy off-the-plan instead of purchasing a new home, you’ll reap some massive stamp duty savings (depending of course on which Australian state you live in). This is because state governments are attempting to stimulate economic growth through construction. Purchasing off-the-plan can save you thousands of dollars on your purchase, and coupled with a first home buyer’s grant, could make a serious dent in your mortgage.
No comments:
Post a Comment