‘Buying off the plan’ is a strategy that can work for many investors. By signing a contract to purchase an apartment that is yet to be built, investors can lock in ownership of a property without having to settle for a period of time. In addition, capital growth during the construction phase of a property can make the property worth more and an investor’s deposit more valuable in the meantime.
With most investors only having to pay between five and 10 per cent of the property value as a deposit, ‘buying off the plan’ gives investors some valuable breathing space to save and reduce the size of the loan required for purchase of the property.
Another financial boon for ‘off the plan’ investors is that stamp duty is generally calculated on the value of the land and building at the date when the contract of sale is signed. The theory goes that the stamp duty value will be lower at this stage than when the building is finished.
Serviced Apartments ‘Off the plan’ serviced apartments can provide investors with a greater control over their superannuation and financial security as the property is managed, repaired and maintained by an experienced operator, is an income-driven investment and fulfils the criteria of not being occupied by the owner.
One of Australia’s most well renowned serviced apartment providers, Quest Serviced Apartments, offers a long lease model that is aimed squarely at investors and not life-stylers. A 6.5 per cent return is offered to investors, plus capital growth. It has been these guaranteed returns that have pulled in over 3,500 investors for over 6,000 apartments in Australia, New Zealand and Fiji.
Major serviced apartments like Quest select high growth areas to build their properties in and manage them expertly, representing a good way to diversify a property portfolio and gain a secure foothold in a growing market.
Quest Apartments is launching ‘Quest on Chermside’, an ‘off the plan’ serviced property release that’s due to be completed in September 2015.
The apartment complex is well situated, located next door to the Westfield Chermside Shopping Centre and Chermside Aquatic Centre and only 10 kilometres from Brisbane’s Central Business District. The serviced apartments represents a secure investment with long term guaranteed rental incomes and an initial 15 year lease to Quest.
Built over six levels, the apartment complex will feature 42 two-bedroom and six one-bedroom apartments and is the second Quest property in the desirable Brisbane suburb.
An initial rent of $456 per week or $23,725 per annum is guaranteed with an initial return of 6.5 per cent per annum. The estimated owner’s outgoings include council rates of approximately $1,000 per annum, water rates of $600 per annum and a sinking fund of $500 per annum. There are no management fees, no letting fees and no repair and maintenance obligations.
Take a look at ‘Quest on Chermside’ and secure your future financial security now.
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