Some investors are wary of getting involved in property that hasn’t already been constructed. This is understandable – it’s always easier to make a decision when you can clearly see what you’re buying before you sign on the dotted line. However, when your property investment is located in an area with plenty of potential for growth, you could be looking at some really impressive profits in the long run with an off the plan investment. Follow these tips to ensure that you get the best possible results from your financial decision.
- Get a preview of your property. While land and property investment packages usually come with architect drawings and detailed images of what you can expect from the house after construction, it’s natural to want to see what your investment will look like before you put any money down. Take the time to check out display homes waterford rise so that you can see exactly what the house will look like, rather than staring at a blank piece of land.
- Have a strategy in place. Investors vary when it comes to their goals for their investments, so your strategy will depend on what you’re hoping to gain financially. Most advisors recommend holding onto the property for at least five years and riding out the market’s waves in order to maximise your profits, as short term investments can be riskier. If you’re planning to let the property instead of living in it yourself, this will also come with its own strategic planning. Know exactly what you want from the property in the long-term, and plan accordingly.
- Negotiate your deposit carefully. While a deposit arrangement for a standard pre-built property investment is usually fairly straightforward, things can get a little more complex when you’re looking at off the plan land and property deals. Negotiate with the developer to minimise your deposit costs upfront, and understand all of your options in advance to ensure you get the best possible deal.
- Be aware of your buying capacity. Make sure you have a clear view of your budget before you begin looking at properties, whether off the plan or pre-built. Entering into agreements that you can’t fully afford will only put you under additional financial stress, and reduce your odds of making successful investments in the future. Make investments within your current means, and take the time to look for properties that fit your budget.
- Know your tax benefits. Many investors look to off the plan properties because of the impressive tax benefits they can offer. When it comes to off the plan properties, you’ll save on stamp duty, as the tax will only be charged to the value of the land, and not the property as a whole. If this is your first property purchase, you should also be eligible for a First Home Owners Grant, which could save you even more on your initial investment costs.
- Research the developer. Before you jump into any deals, do as much research as you can on the people who will be building your property. Take a look at their portfolio, learn about their history, and ensure that you can trust them to take care of your investment.