Downsizing or looking to Owner Occupy? 5 reasons to buy Off the Plan
Are you searching for your next home? Looking to simplify or streamline your home life? Choosing an Off The Plan townhouse or apartment could be just what you are looking for. Here’s 5 reasons to buy Off the Plan.
Buying off the plan (referred to as OTP for the remainder of this article) has many advantages to someone looking to downsize, or looking for an inner city or convenient lifestyle.
1. Stamp Duty Savings
Choosing to purchase an OTP property can have significant savings on stamp duty, whether they are a downsizer or buying their next home. As you are intending to use the OTP as your principal place of residence, you will generally be eligible for the stamp duty concession even if you have previously owned property.
Buying OTP is considered to be a ‘new build’ meaning you can reduce the cost or your stamp duty through an off-the-plan concession. The threshold is $550,000 for home buyers, but the dutiable value is calculated as contract price minus construction costs. For example, if you purchase an OPT apartment for $700,000, but $550,000 will be spent on construction, the dutiable amount is $150,000 which would make you exempt from paying stamp duty. This would save you $18,535.00 in stamp duty fees.
For downsizers, Victoria offers eligible pensioners a full exemption from stamp duty for homes up to $330000 and stamp duty discounts for homes up to $750,000.
2. Choices, choices, choices
When you get in early with a new OTP development, you often have the chance to choose the unit that will best suit you. Did you want a ground floor unit? Perhaps a top level with a penthouse style view? Maybe you want privacy and to be far away from the elevator and foot traffic? Whatever your particular needs, by choosing an OTP development you get choice. Stop wasting your weekends queuing up for open-for-inspections and spending all day to see just six apartments. OTP gives you the freedom to choose what you want – and keep your weekends free!
3. Make it your own
With an OTP buy you can get in early and make some customisations to ensure the property is really your own home. As a buyer there is room for you to negotiate with the developer to be able to change some aspects of your new apartment, unit or townhouse.
The caveat here of course is that any changes must be agreed upon in advance by buyer, developer, and also signed off for both architectural and structural compliance.
4. Community Lifestyle
Living in a complex offers buyers and prospective occupiers a sense of security and real peace of mind. As well as the key to your front door, there would typically be a fob or swipe access needed to access the building and common areas. This can be highly regarded if safety is a concern, as well as security for your valuable items like vehicles or even your mail.
There is also an opportunity to foster community with your neighbours through owners corporation initiatives like shared gardens. For downsizers there is real peace of mind knowing that building maintenance will be handled by your corporate body, as will maintaining any amenities like a pool or gym.
5. High Walk Score Rating
Have you heard of a walk score? It’s a measure of the walkability of any address. It’s no surprise then that an OTP apartment or unit frequently gets a high walk score for its close proximity and easy access on foot (as well as on public transport). A high walk score means that the majority of your daily errands are within walking distance.
OTP buildings often come with additional retail amenities like a cafe, supermarket or hair salon, making your commute a short lift ride away. OTP buildings are also much more likely to have a high Bike Score for their city based locations.
6 Bonus reason: Affordability
If you’re looking to downsize or live close to the action, one of the biggest draw cards for an OTP building is its affordability. It’s not just the significant savings of buying OTP compared to an established build either. A smaller dwelling means greater energy efficiency, lower utilities costs, minimum property management costs as well as flow-on savings like swapping your car for walking.
Finding the right Off The Plan home for your situation can be challenging. At Amity, we have an experienced Melbourne team working to find and sell the best properties for your budget and lifestyle. For help contact the team at Amity on 03 9090 2500 or email firstname.lastname@example.org.
14 July 2021 News