Why You Should Rentvest With Off The Plan Property In 2023

Rentvesting offers the great opportunity to live where you desire and also be able to invest in another property where you can build capital growth and rental income. A popular rentvesting approach that quite a number of people have been drawn to is investing in off the plan properties. These are properties that are yet to be constructed or fully completed. We have put together a few reasons why off the plan properties could be a beneficial option for you. 

Have More Time And Capital Growth

Since the property is yet to be built, you would have more time to financially prepare before taking on a loan and dealing with mortgage repayments. Investors also have the advantage of purchasing at today's prices but settling on the property in the future. Therefore if the market experiences growth, the investor can benefit from a higher property value which would then potentially lead to a higher return.

Greater Appeal In Rental Market

Off the plan properties are particularly appealing in markets where housing supply is limited and the demand is high. By providing an available property where there is a growing need, you would be able to expect a steady rental income and avoid the risk of vacancies. You may also attract tenants who are willing to pay more for your property.

Brand New Equals Less Stress

Having a brand new off the plan place will give you the peace of mind knowing that there would be very minimal maintenance or repairs required. This would reduce the need for the investor to spend additional money on upkeep and be able to rely on updated warranties and guarantees.

Enjoy Lower Deposits

While established properties will require at least a 10% deposit or more, off the plan properties often have a much lower deposit needed and can range between 5% to 10% depending on the location. Without the pressure of reaching a high deposit rate, investors can build up more savings for the long run. 

More Tax Effective

With new off the plan properties, investors can look forward to more tax claims and advantages. In comparison to established properties, you will be able to claim higher depreciation deductions for the property along with the fixtures and fittings.

Furthermore, any interest payments on the mortgage or loan are also tax deductible. This would mean investors can claim the interest paid as a deduction against their rental income. These tax deductions can help to reduce the overall cost of owning the property and also improve your cash flow.  

Access To Incentives

Rentvesting with off the plan also comes with a range of benefits and incentives for buyers. This would include developer discounts, stamp duty concessions and rental guarantees.

Developers discounts can significantly reduce the purchase price of the property making it more affordable for potential investors. To add, the stamp duty could also be reduced or waived for buyers of new properties. For investors, the rental guarantee means that there is a fixed rental income for a set period regardless of whether the property is being rented. This is especially helpful during the early stages of ownership where you may still be looking for tenants.

It is definitely worthwhile to speak with property experts to check what you may be eligible for and how you may offset some of the costs associated with purchasing your investment property. 

Overall, investing in off the plan properties can be a very smart strategy for rentvesting. They offer potential for capital growth, less maintenance, lower costs, tax advantages and attractive incentives. However, it is important for investors to conduct their due diligence by following professional advice and researching the market thoroughly before committing to any investment.

If you want more information about rentvesting or are looking to purchase an off the plan property, get in touch with us at iBuyNew.
Speak to our team of experts on 1300 123 463 or book a call back to find out how we can help.