Buying off the plan

If improving your lifestyle is the reason you’re considering purchasing property then you may already be familiar with buying off the plan. What you may not know is that chic designer oasis with wall to wall glass and blissful ocean views might also be hiding some extremely valuable benefits.

It isn’t well known, but many purchasers have reaped outstanding returns from rapid market growth when they invested as little as a 10% deposit ‘off-the-plan’ and then on-sold their property before the settlement date. Those who choose to hold onto their purchase then have the flexibility to decide whether they periodically or completely let out the property for substantial gains.

There are also numerous tax advantages in buying ‘off-the-plan’ as a property producing income will qualify for depreciation and building allowances and assist in lowering your overall tax burden. Flexibility is another positive aspect with holiday let investments allowing you to specify when the property will be required for personal use, unlike traditional investment properties that have tenants year round.

Having the good sense to organise an ‘off-the-plan’ purchase early will also minimise the amount of transfer duty you’ll incur as when construction is completed the property will no doubt have a substantially higher value. Essentially then, purchasing property ‘off-the-plan’ is an intelligent way to lower the often dizzying outlay required for home building, and with house prices gradually but consistently increasing, the savings are too considerable to ignore.

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