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There are benefits to almost all types of buying, but off-the-plan offers some unique perks. Often, the term off the plan is enough to send some people running for the hills – but there is a lot of misinformation about it.
Off the plan means that you agree to buy a house from the developer – but it isn’t built yet. The building complex or the area hasn’t yet been built. It might sound like a considerable risk, but buying off the plan offers these benefits:
Stamp duty savings
Buying a house is an expensive business and one of the most significant and enjoyable benefits to buying off the plan apartments and homes in the considerable savings on stamp duty.
Many first-time buyers are surprised to see just how much stamp duty can be, so getting to reduce that cost straight away is a big deal.
Repair costs
When you are buying a home or an apartment, if it has had a few previous owners, there will be a wide range of issues that you will need to deal with. There are also likely to be some botched DIY jobs or things you need to care for.
When you buy a new apartment or house, so long as the build is high-quality, you are unlikely to need to spend any money on repairs for quite some time.
Lower maintenance costs are something that you will benefit from for years.
Property ladder
It isn’t a secret that getting on the property ladder in any country can be a challenging undertaking. It costs a lot of money upfront by way of a deposit. Often the deposit for buying a home or apartment off the plan is a friendly 10%.
You will pay the balance after the construction is complete, which can take anywhere between 6 months to two years.
This gives home buyers ages to save money and make sure that they have all of the furniture and other essentials ready to move as soon as they can pick up the keys.
Since you will have more time to save, you will be able to borrow less, making your loan repayments less.
Capital gains
You may buy today’s pricing if you buy off the plan. In a strong market, this frequently means that your home will be worth more than you paid for it by the time you move in. While this is a great benefit, it is worth keeping in mind that it isn’t the reason to buy off-the-plan.
Depending on the market, the value can shoot up by 10-30% or more. While the developer might be questioning how they made this miscalculation, you can enjoy the extra cash.
Energy bills
New properties tend to come with the significant added bonus of having the most energy-efficient technology. Your off-the-plan home will likely be fitted with electricity, water, and gas systems that meet all of the requirements of a new build.
Often new homes and even apartment complexes will use solar panels, green roofing, and more. You will see a saving reflected in your overall costs per year.
Perhaps you are considering an off-the-plan home for your first big investment; if so, here is a great post: Earn An Extra Cushion Of Cash With The Right Property Investment – Adventures begin at home.