10 reasons why your first home buy should be off the plan
Buying your first home is an exciting milestone in anyone’s life. It’s the culmination of hard work, savings and planning.
For many first home buyers, buying off the plan can be a great way to get started on your property journey. In fact, here’s 10 reasons why off the plan is the way to go for first home buyers.
1. Stamp duty savings
One of the most common positives for purchasing off the play is the savings on stamp duty.
Stamp duty is calculated on the “dutiable value” of a property at the date of sale. Purchasing off the plan means your dutiable value is the value of your property at the date of sale.
If construction hasn’t yet started, your dutiable value would be the total sale price less the money spent constructing your apartment. This means first home owners can purchase an off-the-plan property of more than $600,000 and still be eligible for a stamp duty concession or exemption.
Buying a first home is a huge investment, and those extra fees can really sting. Any savings is a welcome help for a first home buyer.
2. Grant support
Buying off the plan means you are eligible to a number of support grants such as the First Home Owner Grant that could net you an extra $20,000.
The new federal government HomeBuilder grant could also net you an extra $25,000 if you’re off the plan development is able to start work between June and December 2020.
3. No surprises
Buying off the plan means there are no hidden costs. This minimises the risk of going over budget like when purchasing a fixer upper.
You know exactly what you’re getting from the layout to the tile colours, all detailed in your contract of sale.
It also gives you plenty of time to get organised before moving into your brand new dream home.
4. Save on repairs
Obviously buying a brand new build means no unexpected shocks like busted hot water service or a leaky showehear.
You’re also entitled to a new home guarantee, where most contracts include a stipulation to fix any defects for up to a year after settlement.
5. Less risk
New builds off the plan means you have a body corporate backing you up. There’s little risk of running into historic building problems like structural damage, termites, dry rot or health risks like asbestos.
6. Lower power bills
Under the Australian Building Code, new properties must adhere to stringent energy efficiency standards.
This is a win for off the plan buyers who will benefit from energy-efficient appliances that will save power but are also more economical to run. Good for your wallet and the environment.
7. Potential gains
Buying off the plan means you purchase your new home at today’s prices. This could mean your home will be worth more on move-in day then when you purchased it.
8. Get in early
Off the plan developments often pop up in growing suburbs. You can get ahead of the curve and be an early adaptor to Melbourne’s next growth area by getting in early on an off-the-plan development.
9. Get started sooner
Off the plan means you can start with a smaller deposit upfront, leaving your with more time to save up a healthy buffer whilst construction is underway.
10. Make it your own
In the early stages, many developers will allow you to customise parts of the build like finishes and colours, making the home truly your own once you get the keys.
Finding the right off the plan home for your situation can be challenging. At Amity, we have an experienced team working across all areas of Melbourne to find and sell the best properties for your budget and lifestyle.
24 November 2020 News