05 Aug 2016

The Perks of Buying Homes (That Don’t Exist Yet)

Buy off the plan

It might sound odd at first to buy a house that hasn’t actually been built yet. Artist impressions and virtual reality walkthroughs can give an indication, but you can’t experience a home until you’re actually in it.

But, believe it or not, there are a lot of good reasons to buy a home off-the-plan. Investors might claim that buyers risk too much by investing such a large sum of money into what is essentially a hypothetical. But you should know what the perks are before making up your mind.

Perks like:

Saving money on stamp duty

Saving money on stamp duty is one of the most commonly known (and biggest) reasons for buying off the-plan.

You could potentially save tens of thousands of dollars, depending on the price of the home you’re purchasing. Darryl Simms, author and founder of Latte Property, says that “in Victoria you could potentially save over $18,700 on a $500,000 purchase if you purchase a new off-the-plan property instead of an established property.”

Any opportunity to save big bucks is well worth considering.

Tax deductions

By buying off-the-plan, you might be eligible for thousands of dollars in tax deductions.

It might sound grim, but your property has nowhere to go but down once it’s built. That’s really the only disadvantage to owning a brand new house – it can only get older, not younger.

But on the bright side, the faster rate of depreciation means more deductions to be claimed. Combined with your stamp duty savings, you’re already looking at paying quite a bit less (and for a brand new, never-before-used property).

Ease of entry

With the property market growing increasingly difficult to get into, buying off-the-plan is one of the easiest ways to get a foot in the door.

You only need a small deposit to start, and you don’t need to pay the balance of the purchase price until construction is complete.

This time can be used to save towards moving, furniture and more.

Darryl Simms says, “With more savings to put towards your new property you will be able to borrow less and therefore your loan repayments will be much lower.”

Mortgage House

At Mortgage House, we’re no strangers to the homeowner’s journey. It’s a long (but rewarding) one.

But don’t worry, we can help with that.

If you’re thinking of buying a home, you can contact us for advice about the best options for you when it comes to your mortgage. The cost of your mortgage can drastically affect your financial planning, so it pays to speak to the experts about it.

Click here to speak to us!

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