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Common Questions for Home Builders
Time on Your Side
One of the biggest benefits of buying off the plan is the extra time it gives you. Unlike a standard property purchase where finance is needed quickly, you’ll often have 12 months or more before settlement. This breathing space allows smart buyers to keep saving and potentially reduce the size of their loan.
One of the biggest benefits of buying off the plan is the extra time it gives you. Unlike a standard property purchase where finance is needed quickly, you’ll often have 12 months or more before settlement. This breathing space allows smart buyers to keep saving and potentially reduce the size of their loan.
A Brand-New Home Without the Hassle
If you love the idea of moving into a brand-new property but don’t want the stress of managing a full build, buying off the plan can be a great middle ground. While you won’t have total control over the design like you would with a custom home, many developments let you choose finishes and fixtures. Always check your contract for what can be customised and any extra costs involved.
If you love the idea of moving into a brand-new property but don’t want the stress of managing a full build, buying off the plan can be a great middle ground. While you won’t have total control over the design like you would with a custom home, many developments let you choose finishes and fixtures. Always check your contract for what can be customised and any extra costs involved.
First-Home Buyer Benefits
There are still government incentives aimed at first-home buyers, which can make off-the-plan purchases even more attractive. Concessions vary by state and territory, and some have changed recently, so it’s worth checking the latest updates on official government websites. You can also explore your potential stamp duty savings with tools like stamp duty calculator.
There are still government incentives aimed at first-home buyers, which can make off-the-plan purchases even more attractive. Concessions vary by state and territory, and some have changed recently, so it’s worth checking the latest updates on official government websites. You can also explore your potential stamp duty savings with tools like stamp duty calculator.
Investor Appeal
Off-the-plan properties often attract investors because of tax benefits linked to depreciation on new homes, as well as rental guarantees. The level of savings will depend on your personal circumstances, but in general, newer builds come with higher depreciation allowances.
Off-the-plan properties often attract investors because of tax benefits linked to depreciation on new homes, as well as rental guarantees. The level of savings will depend on your personal circumstances, but in general, newer builds come with higher depreciation allowances.
Some developers may also offer rental guarantees for a fixed time. Be sure to compare these offers against actual market rents in the area. Watch out for inflated rental guarantees, where a higher rental figure is included in the purchase price and subsidised by the builder. Once the guarantee ends, rental income may be lower than expected. Make sure you have the flexibility to appoint your own property manager when you take ownership.
Some developers may also offer rental guarantees for a fixed time. Be sure to compare these offers against actual market rents in the area. Watch out for inflated rental guarantees, where a higher rental figure is included in the purchase price and subsidised by the builder. Once the guarantee ends, rental income may be lower than expected. Make sure you have the flexibility to appoint your own property manager when you take ownership.
Keep Market Cycles in Mind
It’s easy to get caught up in rising property prices when signing up for a home that hasn’t yet been built. While real estate tends to grow steadily in the long run, prices can flatten or drop depending on broader economic conditions.
It’s easy to get caught up in rising property prices when signing up for a home that hasn’t yet been built. While real estate tends to grow steadily in the long run, prices can flatten or drop depending on broader economic conditions.
Also be cautious of oversupply. If too many developments are approved in one area without matching growth in infrastructure like transport, business hubs, or universities, it could affect the long-term value of your property.
Also be cautious of oversupply. If too many developments are approved in one area without matching growth in infrastructure like transport, business hubs, or universities, it could affect the long-term value of your property.
Choosing the Right Developer
Your experience will depend heavily on who builds the project. Always research the developer’s track record, visit their past projects, check the quality of finishes, and see whether they delivered on time. A reputable builder is key to getting a home that meets expectations.
Your experience will depend heavily on who builds the project. Always research the developer’s track record, visit their past projects, check the quality of finishes, and see whether they delivered on time. A reputable builder is key to getting a home that meets expectations.
Top Tips for Buyers
- Seek professional legal advice before signing any contract.
- Confirm your deposit will be refunded if the project doesn’t proceed by a set date.
- Make sure your contract clearly details the finished product.
- Ask what finishes and fixtures you can personalise.
- Check if the property can be resold during construction if your plans change.
- Request access to the site during construction.
- Speak with your mortgage broker early to make sure your finance is lined up.
- Consult with your financial advisor or tax specialist to understand the full implications.
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