Buying off-the-plan properties is becoming increasingly popular among Australian first home buyers.
And with good reason – because buying off-the-plan comes with some advantages that you might not get if you buy an established home.
1. A brand new dream home
Buying a property off-the-plan appeals to buyers who like the idea of moving into a fresh never-been-lived-in home. It allows you to build your dream home, customised with your preferred materials and finishes.
2. Nothing needs fixing
When you buy an existing home, there’s a chance some fittings might have to be repaired or some sections renovated. With a new build, provided you choose a reputable developer that meets high-quality building standards, your property will be move-in ready with nothing to fix. It’s also unlikely that you will need to conduct major repairs in the first few years.
3. Pay a lower deposit
One of the biggest challenges for first home buyers is coming up with the standard 20% deposit, which can take years to save. Opting for an off-the-plan build means you can pay a deposit of only 10% and continue saving while the property is being completed.
4. Save on stamp duty
Stamp duty in Victoria can amount to thousands of dollars. When it comes to off-the-plan property sales, eligible buyers may qualify for a stamp duty concession. This means the construction costs are deducted from the value of the property, which, in turn, significantly reduces the stamp duty fee.
5. Lower energy bills
All new homes must comply with the energy efficiency requirements of the Building Code of Australia. Homes must meet a 6-star NatHERS (Nationwide House Energy Rating Scheme) efficiency rating with regards to insulation, external glazing, sealing, ventilation and power-saving appliances. As a result, off-the-plan properties tend to be more energy-efficient than established homes.
6. Benefit from the First Home Owner Grant
Another great benefit of a new build is you’ll qualify for a $10,000 grant as part of the government’s First Home Owner Grant (FHOG) scheme if you meet the following criteria:
- The property is valued at $750,000 or less.
- You are a first home buyer.
- You and your spouse have not previously received a FHOG grant or owned a previous home or other residential property.
To find out more about buying an off-the-plan home, contact Property AU on 1300 771 911 we’ll be in touch.