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Things You Might Not Know About Off The Plan Property

 

What Is Off The Plan All About?


To buy off the plan involves purchasing a property that is yet to be built or before the building works have been completed. It is often considered to be a more flexible and affordable choice than investing in an existing property. Those who may not know about off the plan properties could be missing out on many great opportunities and benefits!

 

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When it comes off the plan properties, they are both fixed price and turnkey.

Fixed price means that all the purchasing costs and building expenses are included and once the contract is signed, the price is not subject to change. However, it is important to note that body corporate fees that cover shared amenities will not be a part of the set fixed price and will be added on to the total amount later.

To add, turnkey means that the property is purchased at a fixed price and is ready to live in once it is completed. As described in the name, all the buyer needs to do is turn the key and move right in! You won’t have to worry about additional costs such as payments for landscaping, flooring, window treatment, fencing and more. This is also definitely advantageous for investors who are keen to welcome tenants in as soon as possible. 

 

What Does This Mean For You?


Gain Tax Benefits By Buying Off The Plan


If you are purchasing off the plan and intend to lease out the property, you will be eligible for tax benefits. Investors will be able to maximise the tax deductions available to them through depreciation claims. This is because the Australian Tax Office allows the owner of any income producing property to claim depreciation on fixtures and fittings due to the general wear and tear of the property. 

As this is considered to be a non-cash deduction, investors won’t need to spend any additional money on the property in order to be eligible to claim it on an annual basis. Buying off the plan is a worthwhile option for investors because the newer the property, the higher the claimable amount will be. You can expect to receive greater tax deductions buying off the plan in comparison to established properties.

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Builders Warranty Insurance


All new and off the plan purchases will come with Builders Warranty Insurance which covers the structural elements of the property for a minimum of 7 years.  If any faults come up that relate to the structure of the unit or the home, it will be fixed at no cost for the owner. You’ll be able to have the peace of mind knowing that any potential large scale structural repairs will be taken care of if need be. 

On the other hand, established properties that may be a number of years old could eventually lead to more repairs and maintenance. For example, getting a place that is 10 to 15 years old could result in the whole house needing to be rewired. As insurance may lapse after 7 years, the owner would then be responsible to ensure that all the costs involved are paid for and met in a timely manner.

 

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Have What You Want


It’s no surprise you would want your property to have all the features you desire and to have access to a range of amenities like a pool, gym, cinema room or a backyard BBQ area. While standalone established properties that have additional amenities may be quite pricey, modern off the plan projects would be able to deliver the exact same outcome for a lot less money. 

With luxurious amenities right at your fingertips, you can enjoy a lot more savings on recreational memberships and would have the freedom to specifically include what you want in your property. By being able to decide which features to prioritise, you could plan your finances carefully and create a budget on what you’d like to focus on.


With all of this in mind, it’s crucial for buyers to carefully consider the risks and benefits before committing to an off the plan purchase, and to work with a reputable developer or builder.

If you’re wanting to learn more about what off the plan can offer or are looking to purchase an off the plan property, get in touch with us at iBuyNew.
You could speak to our team of experts on 1300 123 463 or book a call back to find out how we can help.

Published on 7th of June 2023 by Davina Deluao
Davina Deluao
Davina Deluao

Davina graduated from Swinburne University in 2018 with a Bachelor of Arts, majoring in Journalism. Through travelling and studying abroad in NYC and LA, her interests in property and design grew and became a strong pursuit. Davina has been writing for iBuildNew Group since 2019.

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