Off the plan properties are those that have not been built
yet but for which you can agree a contract to buy and invest; they come
with a number of advantages for the investor looking to beat current market
trends. By buying ‘off the market’ you can agree a fixed price
that is in line with the market at the time of the sale, even though by
the time that the property is built you can have significantly increased
your own capital gains if the market has risen whilst the property was
being built.
The fact that you pay 10% of the fee upfront and the rest throughout the
construction process with the final payment upon completion of the building
means as an investor you can structure your money without making it necessary
to strike concessions with banks, this way makes the whole process more
financially stable for the person investing in the property.
In Victoria one major bonus of purchasing off the plan property is the
much reduced stamp duty that you would pay for the property. For a property
that has been built you pay stamp duty on the house and the land that
it occupies, with off the plan this is not applicable as there is no house
at the time the contract is fixed. The stamp duty that is paid is only
done so for the ground that the house will occupy and therefore it is
far less than what could be seen as the regular amounts that apply when
purchasing property.
Please visit us online to view: Off the Plan