Buying a property is a serious investment. It’s even more so if you’re buying your home sweet home. You have to consider many things, not the least of which is coming up with the money. Good thing, as Equire noted, many residential property developers in Australia are making that part easier with off-the-plan offers.
Buying off-the-plan means putting a deposit on a property before it’s built and promising to pay the balance when the construction is complete. You choose the property based on the plan, but there’s nothing there yet. It has many benefits, but there are also drawbacks. Here is a brief look at those:
The benefit of buying off-the-plan property is locking in the price. Developers offer these properties to buyers at lower prices than the market value because you have to wait for them to finish it. Generally, by the time the house or unit is complete, the market value is higher than when you put down the deposit, usually 10% of the asking price. You can choose to keep the property for your own use or sell it and make money off it.
Another benefit is you have time to save up for the balance while waiting, so you may not even have to get a loan to pay for it. At the least, you will need to borrow less, so you save on interest charges. Finally, you can get some tax breaks for buying a new property.
The problem with off-the-plan buying is uncertainty. You’re buying a promise, so you’re not sure what you’ll get at the end of the day. You may have to wait longer than planned to get your home, and you may not even get what you expected. You can avoid most of these things if you buy from a reliable property developer. This is why it’s important to find out as much as you can about the developer.
Buying property off the plan is a good idea if you only consider reputable residential property developers in Australia. If you do your research well, you should not have to regret your decision.