‘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 buildi
ng 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.