Depending on our investment strategy, purchasing property off the plan could provide substantial benefits, such as, significant tax reliefs through depreciation and stamp duty savings. However as there is no actual physical product for us to inspect and examine, we require to proceed cautiously when buying and selecting off the plan property.
The six key aspects to consider when purchasing off the plan property are:
1. Developer or Builder Profile
Establish the developer profile prudently by performing ample research on their development history so as to avoid paying high strata levy or sinking fund down the track for building defects or maintenance related issues. In some extreme cases, we could involve in an expensive legal battle with either the builder or the developer.
Ideally the best orientation in Australia is the north-east facing for maximising the flow of natural light and thus increase the energy efficiency of our home.
View is one of the most intangible value, if not the most, in property. By purchasing on a higher level, the capital value of our property may be proliferated while at the same time reducing the likelihood of shadow casting on our property from neighbouring buildings.
4. Surrounding Development
Tap into the surrounding area for any evidence of gentrification which will offer plenty of lifestyle choices as well as new infrastructures which will support population growth in the locality. These in turn will have a major influence on its potential capital growth and rental yield of the property.
The availability of resort style facilities which is commonly accessible in big residential complex may enhance our lifestyle. However this usually comes with a high maintenance cost in the form of strata levy when those facilities are rendered.
6. Expected Completion Date
Ascertain the expected completion date of the project so we can be more prepared financially for the settlement and to ensure the purchase aligns with our overall investment strategy if it is an investment property.
[ Blogger note: Avoid high-rise apartments unless there is an irrefutable proof of strong market demand for those properties which is based on research and logic and not perception. ]
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