Why buying an off the plan property is better than established one
Buying off the plan is a simple and economical way to find the right housing, which is why it is becoming more popular. Both investors and families can benefit from it, as it is well known to be financially rewarding and money saving. Compared to purchasing an already established townhouse, there are few advantages of buying off the plan home to consider, all of which prove this option is worth giving a chance.
1. Low deposit to begin with
For those who are not yet able to pay the full amount of money for a house, but are working towards it, buying off the plan is a great idea. The deposit developers ask for are usually around 10%. The deposit is there to secure the property for the buyer, and the buyer is obligated to pay the remaining amount after the construction of townhouse is finished. What is so great about the deposit is that is fixed based on the price of the townhouse signed the contract, so in the case of townhouse value goes up, the buyer will still have secured it at the price in the contract.
2. Brand new customised home
Existing properties can be brand new as well, of course. But what buying off the plan offers is a possibility to choose some elements that will make your house unique and more personalised. This includes materials used, finishes and other different adjustments, while with as established house there is probably no such possibility contained in the price.
3. Stamp duty savings
Saving on stamp duty, which covers the costs of change in property ownership, is possible with buying off the plan and it is a real plus for buyers finances. This is possible because there is an exemption for first-time buyers as they will not have to deal with this tax, unlike those who are going for the established townhouses. Stamp duty is unavoidable when buying a new home, and it is a tax on the sale of a property, but with buying off the plan there is a possibility of saving a decent amount of money, which is a real advantage.
4. Great potential for investors
Buying off the plan offers a great possibility for investors who are looking for a good profit. Since buying off the plan, especially very early on when the project starts, also means buying a property for a lower price where the deposit is fixed, there is a huge investment and capital gain potential that comes along with this. If the value of the property goes up after the contract is signed and deposit paid, investors can truly profit, as they originally purchased the property for a much lower price.
Buying off the plan townhouse has many advantages compared to buying an already established property. It offers a great deal of freedom when it comes to dealing with financial matters. It gives first-time buyers a chance to save money on taxes and offers a great possibility for the investors to make a profit, making it a better option than buying an already established property.