Why is it a good idea to buy an off the plan apartment?

If you’re looking at investing in a property it doesn’t get better than snapping up a good off the plan deal.

You could potentially end up with an apartment for less than its value, rent it out for a good return and then enjoy the compound growth.

Getting in at the early stages of a development can be quite beneficial.

Some reasons to invest in off the plan apartments include:

• Ideal prices – The first properties released usually go for the cheapest so it’s a good idea to get in early especially if it’s intended as an investment. Brand new apartments will become dearer in price later on so it’s ideal to get in early.
• Increase your equity – An off the plan purchase means you can lock in the ownership of a property, without having to settle for an extended period of time. It may be one or two years before settlement, so capital growth can often make your initial deposit more valuable in the meantime.
• Long settlement – The long settlement period means you have some breathing room to take care of the investment, or to organise to move house if you intend to be an owner-occupier. You can also use the time to save money and reduce the amount of finance you will need to borrow.
• Government incentives – Purchasing an off the plan apartment means you will be entitled to stamp duty concessions for brand new properties.  Most state governments provide this incentive in order to boost their economy through construction.
• First in best dressed – Getting in early means you’ll have the first pick of the apartments for sale.  You have the choice to grab the one with the best view, or that’s furthest from a busy street.

These benefits show that buying off the plan can be a strategy that works for many investors. Just like investing in any other property, you must research and evaluate the situation to ensure that the numbers work for you, including finance, return and growth potential.

Cite Group is a leading developer with up and coming developments selling now, in Sydney’s thriving suburbs.  Don’t wait till it’s too late, get in early and get an off the plan property today. For more information speak to a friendly team member today.