Off The Plan
Buying property off the plan means buying before the property has been constructed. Generally a small deposit is placed and the remainder of the funds are released during construction (House and Land) or at completion (Apartments). The best time to buy off the plan property is during an upturn in the property cycle as prices are rising, this means that by the time construction is complete the property is already worth more than what was paid for it. Some investors even sell the property at higher prices before construction is even completed.

Benefits

• Pay stamp duty on land value only
• Generally need a 10% deposit with remainder on completion
• Lock in a fixed purchase price at todays value
• The value on completion should be greater as time has passed (6mths - 2 years)
• Highest level off depreciation available as the property is new
• The ability to choose floor plans, fixtures, fittings.

Things to Check

• Your not paying more than what its worth
• The contract is fixed price
• The builder/developer has a good reputation
• Allowances are made if construction is delayed, i.e penalties for late completion
• All of the inclusions are what you are expecting, i.e carpets, tiles, paint, appliances