Off-Plan Property Investment

Key Benefits

Tax benefits

Purchasing property from off the plan will maximise the amount you can claim as a tax deduction as the end of the year from the property’s brand-new fittings and fixtures. Increased depreciation means your holding costs will be much lower, as the tax man is covering a larger portion of your investment property expenses.

Stamp Duty Concessions

Buyers who purchase off the plan are rewarded by being given large concessions on stamp duty. This is because purchasing these types of properties are considered to be pushing the economy in a positive direction.

Pricing

Those who invest in the early stages are likely to get a great deal as builders are looking for fast sales in order to secure their construction finance.

Off-Plan Property Investment

While buying off the plan may seem daunting as you’re not able to see or feel the final product, it does have some amazing upsides! Depending on your circumstances, buying off the plan could be perfect for you.

Buying off the plan can be the cheaper, smarter and easier option if you don’t have the time or inclination to renovate. It can be an easy ‘invest and forget’ strategy with little to no upfront investment of time and effort, plus the capital expenditure is small, particularly in the first 5-6 years.

From a taxation perspective, purchasing property off the plan will maximise the amount you can claim as a tax deduction at the end of the year. Obtaining a full depreciation schedule from a quantity surveyor once your property settles will assist at tax time when claiming deductions for your property’s brand-new fittings and fixtures.

Increased depreciation means your holding costs will be much lower, as the tax man is covering a larger portion of your investment property expenses.

Off the plan investment options are ideal for those wanting to rent property out quickly as it’s in perfect condition from the get-go. These types of properties usually attract high-quality tenants as they place a higher value on the fact everything is brand new, designed with recent trends and finished with modern touches. You’ll likely get much higher rental yields from off the plan properties and they usually have low vacancy rates.

As an early buyer investing in the early stages of the development, you’ll have the advantage of choosing which property you’d like. This means you can choose one with the best view or that is farthest from the busy street, which can be the difference between higher rental prices and better on-sell price. Investing early also means you’re likely to get a great deal as builders are looking for fast sales in order to secure their construction finance, and the option for some basic customisation rights. Most developments will allow you to choose from various pre-selected options, so you can customise things such as the interior fixtures.

Buying off the plan means you’re buying a property that already comes equipped with quality structure, modern detailing, energy efficiency and sustainability. You also have the added benefit of a builder’s warranty which covers your building structure under a seven-year warranty, providing you with some added peace of mind should anything happen in that time.

Although buying off the plan is not for everyone and may have some associated risks, it can be an excellent way to reduce your tax whilst building a highly profitable and valuable portfolio.

Book a consultation with us so we can help you to determine if buying off the plan meets your goals.

You could be well on your way to creating a sound retirement plan or becoming a wealth superstar.

Testimonials

“Sasha, thanks so much for your diligence towards each step. We really would have been somewhere else without your professional insight. I’m greatful that you have got my head out of the clouds for a moment to lay foundations for the future thought. So very greatful. Thanks so much Sasha I can’t believe how easy that was thanks to you. We’re pretty damn happy.”

Andrew and Vanessa Hefren
Sydney

“It has been a pleasure dealing with Sasha from Prime Property Strategies. As a property investor and working full time, she was able to provide good insights into selecting a good growth area for investment and then oversee the whole process from purchase to selecting the right property agent Sasha was very helpful with selecting the best exterior and interior colours as well as managing to get an upgrade on the appliances. She has been highly professional and ready to help at short notice, getting any issues resolved quickly with the developers and builder during construction phase. I would highly recommend Sasha as a one stop property solution for any property investor.”

Joe
Sydney

“Thinking about investing via your Superannuation. Read this lovely testimonial below We were very impressed with Sasha’s professionalism and market knowledge. Our initial managed funds/investments were not performing as well as we had expected, we were starting to look at investing in property and we discussed the situation with Sasha. She initiated an investment strategy for us which was a well thought out, defined and strategic plan, suited to our individual circumstances and requirement for high yielding property.

Sasha helped us set up a self-managed superfund and purchased a purpose built property which targeted student accommodation in Shortland, near Newcastle. The University of Newcastle and John Hunter Hospital are very close to the townhouse which has 3 good sized bedrooms each with built-in wardrobe and ensuite. These rooms are perfect for students and nurses and there is a huge demand for them. Sasha kept us informed of the development at every step. Sasha helped us with the furnishing and rental of the property.

The rental is providing us with an approximately 6% net return and is an excellent long term investment. Thanks to Sasha’s expertise in guiding us through the investment plan, we have now purchased another purpose built property by the same builder and inthe same area. I only wish that we had thought about this type of investment years ago!! ”