7 Reasons why you should buy off the plan in Sydney
Although the price of property in Sydney is one of the most expensive in Australia, buying an off the plan property in Sydney is a great move, for first home buyers, owner occupiers, downsizers and investors.
Not only are you buying a property that is brand new, but you can also take advantage of some great capital growth, especially if your property is due to complete in two years or more. It also gives you more time to save up a larger deposit, or simply rebuild your savings and create an emergency buffer.
Despite what you may have heard in the media, there is still a strong demand for Sydney property and off the plan apartments are one of the means of fulfilling this demand, especially with land becoming scarcer due to the harbour and river positioning alongside the Blue Mountains. Although, according to CoreLogic the median apartment price in Sydney is currently $783,221, there are still opportunities to purchase new Sydney apartments for under $550,000.
So, why should you buy off the plan property in Sydney? Here are 7 reasons you should consider.
7 Reasons why you should buy off the plan property in Sydney
1. More affordable entry prices
Buying off the plan in Sydney firstly makes a much more affordable property purchase, especially if you buy before the property is released to the public. Typically, the earlier you buy, the more affordable the property, so it really does pay to be the early bird. If you wait until the property is under construction, the more likely property prices will increase, and again rise in price when the property finally completes. An off the plan property in Sydney therefore really does give you a more affordable way onto the property ladder, compared to buying at auction, where it can very quickly move out of your price range, especially if competition is fierce.
2. Less competition
Speaking of competition, there will be generally less people to compete against when buying an off the plan property in Sydney. This is because there are usually more floor plans to choose from, giving you more opportunity to purchase the apartment that you prefer. And as mentioned, the earlier you buy, the greater chance you have of buying the property you want, before the public hears about it. The best thing to do is to make sure you are on the newsletter and are on first name terms with your Property Consultant at iBuyNew so that we can let you know first-hand which properties have just launched.
3. Government incentives
Another reason why you should consider buying off the plan in Sydney compared to an established older property is due to the government incentives. A new property, such as off the plan will allow eligible first home buyers to take advantage of the First Home Owner Grant which currently sits at $10,000. First home buyers will also no longer have to pay stamp duty for properties up to $650,000, whilst for properties up to $800,000, there will be concessions available. On a $650,000 property, this is a saving of approximately $25,000 in stamp duty.
Today, people want to live a convenient lifestyle with everyday amenities such as transport, shops, schools and dining right on their doorstep. New off the plan Sydney apartments are well placed close to all of your important amenities ensuring that you lead a highly convenient lifestyle. New apartments are also becoming more lifestyle focused, with resident only amenities including features such as swimming pools, outdoor cinemas, BBQ areas and gymnasiums, helping to attract rental tenants and also making these properties easier to sell in the future.
5. Population growth
Sydney is now home to over 5 million people and is currently Australia’s largest capital city. The city is expected to reach 8 million people by 2050, which is faster than anticipated. With such a high population growth which is set to continue, new Sydney off the plan properties are required to meet this demand, with a focus on building upwards as well as concentrating efforts on new high growth regions such as in Sydney’s south-west region and out towards the new Western Sydney Airport at Badgery’s Creek. Buying a property in Sydney will make a strong investment both today and in the future. In fact, in the past six years, building approvals for high-rise apartments have rapidly risen in NSW, with this trend expected to continue.
6. Great schools
Sydney is also home to some great schools and a lot of students, especially international students attend the universities here such as the University of Sydney, University of New South Wales and University of Technology Sydney. Many of the new off the plan Sydney properties are situated within easy reach of the universities, making this type of property a great investment property to target both students and teaching staff who rent.
7. Strong economy
Sydney has a strong economy which is mainly driven by the services sector such as banking and finance as well as being a tourist hotspot. By 2026, Sydney’s banking and finance sector is estimated to account for one in every five dollars generated by the city’s economy. By this time, finance, professional services and information media and telecommunications will comprise over 40 per cent of the economy in Sydney.
According to analysis by consultancy SGS Economics and Planning, the planning and insurance businesses already holds a 16.2 per cent share of Sydney’s economic output which is expected to increase to 21 per cent in the next decade. Buying an off the plan Sydney property therefore makes a secure investment, which is reliant on a number of strong economic hubs and not seasonal ones like mining towns.
Get in Touch
To find out more about buying off the plan in Sydney and what Sydney properties iBuyNew currently has available for sale, contact our expert Property Consultants today. Call us on 1300 123 463.