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DO AS WE DO IF NOT AS WE SAY - OFF THE PLAN!

If you truly understood Off the Plan property purchasing, the words “enter stage 1” would be music to your ears. For those that don’t….you need to keep reading, if you like making money that is!

Let’s start with a TRUE story from our home town of Dee Why, Sydney, Australia.

Last year we had the great pleasure of releasing the Stage 1 purchases of ‘Oceana’ in Dee Why, currently in the excavation stages, being built by the reputable developers Aranda.

The one bedroom entry level are now asking mid $600,000’s with prices due to go up again shortly. The one bedroom entry level is almost $100,000 HIGHER than the original Stage 1 releases which took place in October/November of last year. Guess what that means if you bought into that development????? YOU MADE MONEY, A LOT OF IT & ‘Oceana’ isn’t even built yet. Massive congratulations must go out to all the buyers who purchased in this development.

Part of the success was getting in at the Stage 1 release special pricing. The secret here is, in the future, purchase in the Stage 1 release…!!!

Many people reading this probably aren’t even certain about the pros of buying Off the Plan as opposed to purchasing a slightly older property. Below we’ve outlined 10 of the key benefits as to why off the plan can be more beneficial in the short & longer term. You really should read this…

  1. Stamp Duty Savings
    Stamp Duty benefits are available to some buyers. This can save you thousands of dollars on your purchase. Ask your Property Consultant to tell you about the existing Stamp Duty Benefits that might apply to your purchase of an off the plan apartment.2. First Pick – Greater Choice
    When buying off the plan, you get to pick your apartment first. This means you get the chance to pick the best apartments. If you wait until construction has finished, only the leftovers will be available and in most cases these are the ones nobody wants.

    3. Time
    Whilst settlement can be up to 2 years away, this is positive as it gives you time to save for a larger deposit. If the property market grows in value, then you have also made some good equity growth.

    4. Financial Benefits
    Some states have put in place special incentives for First Home Buyers and Investors to take advantage of when buying off the plan. They are encouraging the purchase of off the plan property and by doing so, you can save thousands of dollars. Ask an Property Consultant about what Financial Benefits you can attain when buying in your home state.

    5. Deposit Options
    Whilst most people pay cash to secure their deposit, there are other more flexible options that you can consider. These include using a Bank Guarantee and a Deposit Bond.
    If the developer is happy to accept on exchange.

    6. Lock in a Price
    When you buy off the plan, you lock in your price and if the property market grows in value, and your property goes up in value, you don’t have to pay any more. We have many clients that pay X and by the time they settle, their property has gone up between $40,000 and $100,000! This is very powerful as this capital growth allows you to buy another property and continue to build your property portfolio.

    7. Tax Advantages
    Being a new property, you can claim Depreciation which is a major tax incentive which is popular for investors. This helps reduce the ongoing costs of holding the property and allows you to build a larger portfolio.

    8. Colour Choices
    Occasionally you will have a developer that offers you 2 finishes options for your apartment. You may get to choose between a light and dark colour scheme. Depending on your preference, if you buy early enough you may get that choice.

    9. Deposit Held in Trust
    When buying off the plan, your cash deposit is held in trust. Usually this money is invested on the buyers behalf while you wait for the construction to complete. This could mean a few thousand dollars of interest which is a nice little bonus at the end of construction.

    10. It’s New!
    Everyone loves NEW! As a first home buyer you’ll love moving into something brand new while for investors, you will maximise your rental return as an incoming tenant will pay more to live in a new apartment.

Novak are currently the sole agent for a few incredible Off the Plan developments across the Northern Beaches. For further details please call us on 8978 6888 24/7 or email us at salesenquiries@novak.com.au

Best of luck to you all & please don’t hesitate to contact us to discuss any of the above.

The Goss!
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DO AS WE DO IF NOT AS WE SAY - OFF THE PLAN!