Off the plan property offers exciting opportunities for
the real estate investor. ‘Off the plan’ means purchasing
a property that has not yet been built, and there are a number of incentives
for doing this. The greater options it affords the investor mean they
are able to tailor their investment to a more specific part of the market,
thus guaranteeing them greater returns over the period of time in which
they hold onto the property.
There is value in being able to relate to the developer as the property
is being constructed, an example of which could be being able to choose
the best apartment in a block and being able to see the factors that would
relate to your choice of that. The sheer variety of these decisions gives
the investor much more scope with their investment and they can make savings
on top of these through tax benefits such as depreciation.
Another of the biggest savings available within Victoria is the cost of
stamp duty for off the plan property. Stamp duty is usually based around
the value of the house and the land that goes with the purchase but since
‘off the plan’ means the development has not yet begun, the
stamp duty in accordance is vastly reduced. The investor only pays stamp
duty in relation to the land and therefore when the building has been
completed effectively no stamp duty has been paid on the investment itself.
Once the building has been constructed the purchaser has to pay the final
instalment and so there is a long period of time in which to organise
and control your finances in relation to any other investments that you
may have made within the time it took to build the property.
Please visit us online to view: Off the Plan Property