“Off the plan” properties are those on which titles have not yet been obtained. It could be that constructions has not yet begun, or that the development needs final certifications or to go the the Council sealing process or title registration. In other words, it is a “plan” on a property offered to potential buyers with the promise of developing/finalising it in the near future. Such properties are attractive when the locality is an infrastructural goldmine with entities such as an airport, a university, schools, or highways in their proximity.
Here are five potential advantages of buying an off the plan property:
- Tax savings – If the property you’re eyeing is merely an investment, be prepared to save a lot of dollars in taxes. The depreciation on furniture, fixings, and the building itself will be lower compared to existing buildings.
- Lower maintenance – Existing properties need constant maintenance and repairs. If building a home from scratch, that too for yourself, you will ensure it is well-built without needing expensive repairs and additional maintenance costs.
- Lower power consumption (and lower bills) – Australian Building Codes require appliances in your “off the plan” home be energy efficient. It means potential savings on all your utilities including gas, electricity, and water. You could be saving money and the environment at the same time. So, it’s a win-win.
- Invest now, pay later – You will be paying only 10 percent of the deposit when signing the contract. The rest is paid only after construction is completed. You have enough time to organise your finances for a comfortable pay-off later. You can also use the time to purchase essentials for your future home.
- Your choice of living – When buying a property that isn’t yet built you can add your personal touch (subject to the seller agreeing to this) by choosing the colour, tiles, fixtures, and furniture you want. Making it into a home that you want to come to everyday is possible. Personalising an existing building is difficult and can cost you an arm and a leg.
These benefits aren’t without risks. Securing a good off the plan property in Queensland depends largely on the reputation of the developer. Ensure you contact a reliable real estate agent or, if purchasing it yourself, do your research thoroughly. Inspect all paperwork, run it through seasoned sources including your solicitor, and sign the dotted line only when you are convinced of the development’s fulfilment.