10 top reasons to buy off the plan in Canberra
28 February 2016
There are a variety of new developments at different stages of construction around Canberra. You may be about to choose between buying a new property off the plan, or buying one that has already been built. Here are 10 reasons why it’s a wise choice to buy off the plan.
► Get the first choice
When buying off the plan, you have the chance to handpick your apartment. If you wait until construction is over, all the best apartments will probably have already been sold.
► Buy yourself time
With longer settlements involved in buying off the plan, you have more time to save a larger deposit. If the property market grows in value, you’ve also made some good equity gains.
► Lock in a price
When you buy off the plan, you lock in your price. If the value of the property market grows, you don’t have to pay any more and you’ve made a substantial capital growth.
► Save on stamp duty
Stamp duty benefits are available to some buyers when purchasing off the plan. This could save you thousands of dollars on your new property.
► Access financial incentives
You may be eligible for special incentives such as the ACT Government’s First Home Owner Grant and other incentives for buying off the plan. This could save you thousands.
► Have more deposit options
While most people pay cash to secure their deposit, there are other more flexible options that you can consider. These include using a bank guarantee and a deposit bond.
► Potentially earn interest
When buying off the plan, your cash deposit is held in trust. In some cases, this could earn you a tidy bonus of a few thousand dollars in interest by the end of construction.
► Enjoy tax breaks
Being a new property, you can claim depreciation. This tax concession is a major incentive for property investors because it can help reduce the ongoing costs of holding the property.
► Choose your colour
When buying off the plan in some developments, you may get a choice of colour schemes for your apartment. The earlier you buy, the more likely it is that you will get that choice.
► Get that new home feeling
As a buyer, you’ll love the sense that everything is untouched and brand new. For investors, you’ll maximise your rental return because tenants will pay more to live in a new apartment.