It may sound scary to purchase a home that hasn’t been built yet, but buying off the plans is beneficial in a number of different ways.
Buying off the plans refers to buying a home, whether it’s a house, townhouse, unit or apartment, before it’s been constructed or before construction has been completed. It’s a great option to explore for a range of reasons:
Stamp Duty Savings and Concessions
Currently the Victorian State Revenue Office has a new off the plan concession in place for purchases of dwellings in a strata subdivision that is available for contracts entered into on or after October 21, 2024 and before October 21, 2025. The new concession allows the purchaser to deduct the construction costs incurred on or after the contract date when determining the dutiable value of the purchaser’s property, or in layman’s terms, the price you paid for the property or the market value, whichever is greater, giving you a potential saving of thousands of dollars off the purchase price.
Potential for Capital Growth
Melbourne has a historically strong property market, and buying off the plan can allow you to pay a fixed price for the home. While you wait for your new home to be built, the area where you property is being developed may become more desirable, increasing the long-term value before the build has been completed.
Modern Home With Modern Features
A new build often comes with the latest in design trends, modern appliances, and energy-efficient features. This can include smart home technology, energy-efficient heating/cooling systems, better insulation, and sustainable building materials. Depending on the developer, you might be able to customise certain features of the home or apartment, such as finishes, flooring, and fixtures, making it more suited to your tastes, which in turn can add resale value.
Less Maintenance in the Early Years
As a new property, you will generally face fewer repairs and maintenance issues in the first few years. Everything is covered by warranties, and major appliances and systems (such as plumbing and electrical) should be in good condition. The home will have fewer wear-and-tear issues compared to an older property, which can save you money on upkeep.
Location Benefits
Buying off the plan gives you access to emerging or growing areas in Melbourne, often before the infrastructure and amenities are fully developed. This allows you to get in early, potentially securing a property in a location that will become more desirable as time passes. Many off the plan developments are strategically located near key transport links, retail, schools, and parks, making them attractive options for long-term investment. Some well established suburbs may also have opportunities as older dwellings are demolished and developers create new properties in historically sought after suburbs that were previously unattainable.
Less Buyer Competition
Since the property either hasn’t started construction yet or is still in the process of being built, you don’t have to compete with other buyers or rush to make an offer. This can provide a less stressful purchasing process and reduce the risk of missing out on the property. In cases where apartments and townhouses are being built, you may have the pick of a range of properties and can choose the layout that best suits your needs without having to compete against a range of other buyers.
Buying a home off the plan in Melbourne offers several advantages, particularly for those who are prepared to wait for construction to complete, are looking for modern homes, and are interested in securing property at today’s prices while benefiting from potential future growth. If this is an option you’d like to explore, get in touch with Bayside Real Estate Advocates today.
