A Guide To Buying Off The Plan

off plan picture

There are a number of factors to be aware of when buying Off the Plan because you are entering into a Contract to buy a property without first having been able to view and assess the finish project. This article will help you establish the pros and cons of buying a ready built home off the plan.

Benefits

  • Maximise tax advantages
  • Stamp duty concessions in some States.
  • Customised design possibilities.
  • Longer settlement period, allowing for potential capital growth.
  • If settlement is longer than 12 months, then often a valuation at the current market price may allow 100 percent finance.
  • Interest on deposit is often received by purchasers when cash deposits are made.
  • Time to save more cash during settlement period.
  • Opportunity to move into a brand new home.
  • Deposit is held in trust.

 

Risks

  • The project may not proceed.
  • The finish product may differ to what you anticipated.
  • Expected capital growth doesn’t eventuate or value may be less than purchase price.
  • Developer may go into liquidation which stalls the project and ties up your deposit.
  • Project may be delayed.

 

For further information and assistance please contact us on (03) 9557 0797 or email your enquiry to info@globerealestate.com.au.