There are a number of factors to be aware of when buying Off the Plan because you are entering into a Contract to buy a property without first having been able to view and assess the finish project. This article will help you establish the pros and cons of buying a ready built home off the plan.

Benefits

• Maximise tax advantages
• Stamp duty concessions in some States.
• Customised design possibilities.
• Longer settlement period, allowing for potential capital growth.
• If settlement is longer than 12 months, then often a valuation at the current market price may allow 100 percent finance.
• Interest on deposit is often received by purchasers when cash deposits are made.
• Time to save more cash during settlement period.
• Opportunity to move into a brand new home.
• Deposit is held in trust.

Risks

• The project may not proceed.
• The finish product may differ to what you anticipated.
• Expected capital growth doesn’t eventuate or value may be less than purchase price.
• Developer may go into liquidation which stalls the project and ties up your deposit.
• Project may be delayed.

For further information and assistance please contact us on (03) 9557 0797 or email your enquiry to info@globerealestate.com.au.