Buying off-the-plan apartments

Buying off-the-plan is an attractive choice for both owner occupiers and investors, however you need to look into the detail to work out if it is the right option for you.

Buying off-the-plan has the advantage of locking in the NOW price (and settling on the property later), as well as a number of tax advantages. Off-the-plan properties are also ideal for investors or buyers who need time to organise their finances. 

There are also Government incentives for all when purchasing a new property. You should contact their Office of State Revenue or visit their website for more information www.osr.nsw.gov.au.

Conversely, buying off-the-plan is not for people who need to relocate or move residence in a short period of time. Off-the-plan apartments can take around 2 years to build before owners are able to move in, which does not suit a lot of people.

Here are a few more items you should consider before buying an off-the-plan apartment.

Do research
Do your research to find out growth and expected yields in that area. Get an estimate of your quarterly strata fees. If you are looking for investment, find out the potential rent return as well as the vacancy in that area. Also, make sure you find out what things are tax deductible for you and their implications, as well as the government incentives mentioned above.

Do register on project agencies’ databases

Sales people will always first speak to the potential buyers who are the easiest to contact. People on development project databases often get the first opportunity on available apartments.

Do act decisively

Usually the first third of the project is sold, not only to members of the agencies databases, but also to buyers who act quickly. Obviously the apartments with the best aspects and most desirable features are sold first.

Do understand the value of time

Generally, property prices increase annually (and occasionally dip in value). Don’t panic – over time your investment will serve you well.

Do buy in the areas people want to live

The top three priorities people have for choosing somewhere to live are proximity to schools, work and transport. Some other things to consider include access to shopping centres, recreation facilities, parks, cafes and restaurants.

Do have your solicitor look at the contract

It’s important to choose a solicitor who understands and is experienced in off-the-plan contracts.