Professionals Real Estate 
With the fluctuations in the real estate market affecting the value of properties, buying off the plan has been labeled as rather ‘risky’. Buying off the plan actually provides for an alternative for buyers who want a brand new home, and for less. This property acquisition may require greater scrutiny; however, the effort can definitely pay off. If you are considering on buying off the plan, here’s what you need to know:
The Benefits:
- With a mere 10% deposit and a home loan pre-approval, you can secure a property. This financing option buys you more time to pay the remaining balance, which will not be required until settlement. This financing setup also implies more saving time; thus, lower home loan amounts.
- Eligibility to Grants and Reductions. The construction industry is one of the main priorities of the government. With this, it offers grants and reductions on stamp duties to potential buyers so as to boost the construction industry. Different states offer different individual eligibility on this matter.
- Benefit from Capital Growth. Buying off the plan is always a win-win situation for the buyer. The period between the settlement from the time you pay the deposit grants the buyer the benefit of capital growth without the burden of interest.
- Minimize Costs. A brand new home requires less maintenance cost while allowing the buyer to make the most of depreciation tax over time.
Reducing Risk in Buying off Plans:
While you may not be able to inspect the property you purchased, you can reduce the risk in buying off the plan with the following:
- Pay careful attention to the minute details such as materials and brands of fittings and fixtures, and warranties. Make sure that these details are listed in the contract.
- Discuss the possibility of customising the property. This allows the buyer to add a personal touch to the property, or enhancing its value for purpose of investors.
- Talk to a mortgage broker to understand how the changes in interest rates can affect your repayments. Consulting about the more affordable options considering the present conditions is also a must.
- Know more about the developer, architect, and construction company you are dealing with. Make sure you trust only those with proven track record based from researching on their reviews and resident feedback—or better yet, visit some of their completed projects.
- Have a legal professional to review your contract before signing.
- Once built, inspect the property aided with a checklist before settlement.
