Buying a new apartment in Australia is a great move. You can buy a new apartment for sale in Australia as your first home, next home or even as an investment property. However, whatever approach you decide, it is essential that you fully understand how buying apartments off the plan really works.
Are you looking to take the plunge and buy a new apartment for sale in Australia? Buying a new apartment in Australia is likely to be one of the largest and most significant property purchases you will ever make in your lifetime, so it is essential that you buy the right property right first time round.
Why buy a new apartment?
There are many great reasons as to why you should buy a new apartment instead of buying an older, established property. Firstly, people love new and given the opportunity, buyers and renters alike would prefer to live in a property that is brand new compared to one that is starting to crumble or suffer from damp. It also means you can charge higher rents if your plan is to turn the property into an investment as tenants prefer to live in a new property.
Another reason as to why people prefer to buy a new apartment is that it means no one else has lived in the property before so you can get a sense of newness.
One of the main incentives of buying a new apartment that should be taken into consideration is that it offers higher tax deductions, especially from depreciation savings. If you choose to rent out your property you are eligible to claim depreciation, and the highest claims come from year one. Owners can claim depreciation on the capital works and building as well as the internal fittings such as carpets, blinds, air-conditioning and appliances and can save you thousands in tax every year.
By purchasing an older property, you won’t be receiving as high depreciation savings as you can only claim on the remaining years, and the savings decrease as time goes by. An older property also means that the likelihood for maintenance issues in the not so distant future is higher which can be costly.
In comparison, a new apartment will have less maintenance costs as the property and appliances are brand new and should last far longer, whilst modern buildings today are generally more energy efficient and are well designed to cater for today’s tenant and will save money in energy bills.
There is currently a high demand for new apartments across Australia due to the fact that there is a shortage in residential housing, whilst the population is expected to increase, particularly throughout the major capital cities such as Sydney, Melbourne and Brisbane. In some areas, there is also a shortage of available land to build on, meaning that developments need to be built higher to house more people, or these apartment developments are being built further out of the city.
Many professionals today prefer to live in a new apartment that is close to the city and their place of work, whilst enjoy shorter commutes and have all their necessities on their doorstep including shops, restaurants and public transport options. Today it is all about convenience and lifestyle and not everyone has the time to mow their lawn so this type of property appeals much more to a high number of people including students, professionals, couples and families with children as well as downsizers.
Another great reason why buying a new apartment is a good idea is that if it has yet to be developed (off the plan property) then this long construction time allows you time to save up for a larger deposit, whilst avoid having to pay a mortgage straight away. It is also likely that your property will increase in value during this time and you would have made money without having done anything.
One important thing to remember is that if you are a first home buyer then it is in your best interests to purchase a brand new apartment as you will be able to claim the first home owner’s grant if you are eligible whilst you can also take advantage of stamp duty concessions; however both these concessions vary from state to state so you need to check this first.
Before you go ahead and purchase a brand new Australian apartment it is key that you do all your research first and know exactly what you want to buy and where in Australia you actually want to buy it. Just like you, there are thousands of people looking for new apartments off the plan in Australia every day so to ensure you don’t miss out you need to act quickly once you know what type of property you want to buy.
One of the main reasons why many Australians miss out on purchasing any type of residential property whether it is a new apartment or an older property at auction is that they don’t take action immediately and procrastinate for far too long. By the time they have made up their mind that this is the right property to buy, it has already been sold. That’s why you need to be decisive and know what your must-haves are, figure out your maximum budget, whilst have your 10% deposit available and be ready to pounce when the time comes.
With hundreds of new apartments for sale in Australia it can be extremely difficult to know where to start and the type of property to buy. Buyers are almost spoilt for choice, particularly if this is their first purchase. Should you buy an apartment in a boutique low-rise development with low strata costs, or maybe you are considering purchasing an apartment in a high-rise development with plenty of communal facilities including a swimming pool, sauna and rooftop deck?
Do you go for a one bedroom apartment, or should you purchase a two or three bedroom apartment? And then there’s the decision of what level you should buy on, the outlook you want and whether you require car parking?
With so many important questions to think about, you needn’t worry as help is at hand. Our Property Consultants at iBuyNew are here to help you every step of the way to make your property purchase as easy and straightforward as possible. We provide expert guidance to ensure you make the right educated decision with the least stress as possible.
If buying a property is important to you then why not pick up the phone and call us on 1300 123 463 today and discuss what new apartments are for sale in Australia right now. If you prefer, you can send us an email enquiry by using the online form and we will get back to you as soon as possible.
Want more specific capital city information? Find out more information on buying new apartments in the following states: