Purchasing real estate or property at the current prices, before the construction is completed or even before it begins is called “buying off the Plan”. There are many companies, like Resort Brokers Australia, which offer such plans and serves related to property management rights in Queensland.
Many developers and resort brokers in Australia need to get a certain number of pre-sales, as a pre-condition to get finances from the bank. These developers offer ‘early bird’ discounts to the first few buyers.
‘Off the plan’ payment schedules might differ depending on the construction project and developer. But in most cases, you pay only 10 % of the cost price before signing a contract with the developer. The balance payment is to be paid only when the construction is completed and the home is ready to move in. The property is finalised at prices prevailing when you sign the initial contract. This might take anywhere between a couple of months to two years after the initial agreement is signed. Land packages, villas, townhouses, and apartments are available under this plan.
Benefits of ‘off the plan’
In a rising market buying property at today’s prices is attractive, especially as you get to settle the deal at a later date. There are certain risks involved in this type of purchase, but it is worth taking the risk as the property can be got at an affordable price under this plan. You will end up paying much more if you buy an apartment in a completed building and you might not even get the apartment of your choice, as the best ones would all be taken.
Delayed settlement frees up time for you to save for your mortgage deposit and plan well for the repayments. Another advantage is that, since you will make your pick early, you can select finishes, fixtures and customise your apartment as per your tastes and requirements. Another big advantage of this plan is the considerable tax savings you will receive.
So, if you get an opportunity to invest in an ‘off the plan’, it is an idea you should consider seriously.