5 Advantages of Buying Investment Property off the Plan

It’s a great time to invest in Australia’s property market today.

It’s hard not to jump in knowing that Australia’s demand for properties has risen to 4% while the property prices saw a 6.8% increase. The numbers are so good that Australia’s economy saw investors hauling profits left and right off the property market.

The question remains: how should you profit the most out of Australia’s primed property market?

The best way is to buy an investment property off the plan, the act of buying a property or unit before it’s even finished and ready. Now, what are the exciting advantages of buying an investment property off the plan?

  1. You’re paying the property for its value today

One of the best things about buying an investment property off the plan is that you’re paying for the property’s value before it is even finished and furnished. That means a lower purchasing cost compared to buying an investment property right after it was built.

Using your investor’s eye, the money you saved is money you could invest in another property or, if you have a flair for flipping properties, you can use the money to furnish your built property and sell it for an even better price.

  1. You have a say on the property’s design

When buying an investment property off the plan, you may have the right to have a say on the design and finishes of your investment property. Imagine not having to renovate your property, that’s one perk of an investment property off the plan a built property can’t provide.

No renovation means less cost, making your hard-earned money work for a better endeavor than renovating or repainting your investment property. No renovation also means that maintaining your investment property will be hassle-free.

  1. Cost-friendly payment terms

When purchasing an investment property off the plan, the buyer usually has to pay up no more than 10% of the property’s current market value as deposit. The remaining payable amount can be paid later on an agreed date. This allows the buyer enough time to prepare for the amount payable while immediately owning the investment property.

Most of the time, the remaining balance can be paid at a later date on comfortable terms. Cash that would’ve gone straight to the property can now be retained for better use while you maintain a comfortable position to pay off the remaining balance.

  1. New property perks

Another advantage of buying an investment property off the plan in Australia are the convenient new property perks you may enjoy like the 7 years builder’s guarantee and stamp duty savings.

The 7 years builder’s guarantee is a rule that the builder must shoulder the cost of the repair of any structural or interior problems of a newly built property for 7 years. This is a great way for the builder, and you, as an investor, to guarantee that the property was built according to standards. It’s a great warranty that will eliminate most structural or interior headaches that might plague you for years.

Stamp duty savings offer you an opportunity to save on thousands of dollars by providing stamp duty bonuses and reductions when you opted for an investment property off the plan. Just like avoiding repainting or renovation, those thousands gained from stamp duty bonuses and reductions might help a lot when it comes to furnishing your property or for your other investment prospects.

  1. The trend is your friend

“Buy low, sell high.”

This investing adage rings true especially when buying an investment property off the plan. Imagine being able to own an investment, just by depositing 10% with easy and comfortable payment terms for the remaining balance, and being able to sell it off for way, way more than the value you initially paid it for.

That’s the beauty of owning an investment property off the plan, you assume calculated and affordable risks while reaping the full benefits the moment your property is ready and furnished. You buy low while the property is being built and you sell high after the property is fully furnished.

When it comes to investing, prudence is the key to a sustainable profit.

Keep in mind that it’s necessary to ensure that you’re both financially fit and sufficiently knowledgeable before embarking on this exciting and profitable investment venture. You should know more about your rights as an investor, since buying an investment property off the plan hinges on the property’s future value, it’s critical that you have access to the builder’s contact information and some of the property’s information. This way, you can protect yourself from most of the possible pitfalls of property investing. It’s also necessary to learn more about the details when buying an investment property off the plan. This is important to be able to assess which strategy will work best based on your current financial capacity, the current trend of the property market, and the strength of Australia’s economy.

It’s time to make your every dollar count, get sound and timely investment property advice.