From The Experts:
Off The Plan

Buying a new home before construction has been completed has many advantages and can be an affordable way for first time buyers to enter the market. As with any new purchase, there are a number of things to consider before entering into a contract to buy a home off the plan – the team at Evans and Wislang break it down for us.

Benefits of buying off the plan

Buying off the plan offers several potential advantages, which can make it an appealing option for many buyers. Here’s a rundown of some of the key benefits:

1. Potential for Lower Purchase Price

Lower Price: Properties bought off the plan are often priced lower than similar completed properties, providing an opportunity to enter the market at a more affordable rate.

Buyer Incentives: Developers may offer incentives to attract buyers before construction begins.

2. Future Capital Growth

Appreciation Potential: If the property market rises, the value of the property may increase by the time construction is completed, allowing you to benefit from capital growth.

Investment Edge: Purchasing early can position you well in a growing neighborhood, potentially leading to a higher return on investment.

3. Customisation Opportunities

Personalisation: Depending on the stage of development, you might be able to choose certain finishes, fixtures, or even make minor modifications to the layout.

Modern Features: New builds often come with the latest design trends and technologies, which can enhance comfort and efficiency.

4. Extended Settlement Period

Time to Save: Since the property isn’t completed yet, you have more time to save for a larger deposit and prepare financially for settlement.

Planning Ahead: This extended timeline can be useful for planning your move and coordinating any necessary preparations.

5. New and Modern Construction

Up-to-Date Standards: New properties are built to current building codes and standards, which often means better energy efficiency, safety features, and modern amenities.

Less Immediate Maintenance: Newly constructed homes generally require less maintenance and repairs compared to older properties.

6. Warranty Protections

New Build Warranties: Some new properties come with warranties that cover defects in construction and major systems, giving you peace of mind regarding the quality of the build.

7. Choice of Location

Preferred Areas: Buying off the plan often allows you to select from the best locations within the development, such as desirable floor levels or views.

8. Potential for Stronger Negotiation

Market Leverage: As an early buyer, you might have more negotiating power with the developer, especially if they are keen to sell a certain number of units quickly.

9. Avoiding Bidding Wars

Fixed Pricing: When you buy off the plan, you avoid the competitive bidding process common with established properties, which can help in securing a purchase at a fixed price.