Well, there are many ways to invest in real estate properties. But if you are thinking to buy ‘Off-the-plan’ then be cautious. This is the riskier way of investment. Buying off the plan means investing money in the property which doesn’t even exist. Property Valuers Adelaide say-
“Risks associated with this type of investments is quite high.”
Experts usually not suggest investing in such properties which haven’t built yet. Due to smart advertisement strategies, people still want to invest in “Off the Plan”. As it becomes easier to save stamp duty and allowances which makes property “cheaper”. The disadvantages of buying off the plan are tremendous.
Here we have listed down the benefits of buying a property “Off-The-Plan” -
- Enough time to arrange funds - The best part of buying off the plan property is - you don’t need to pay the whole amount of home in a single term. At the initial stage, you only have to give a 10% deposit. The rest amount of money will be divided into small parts and then you have to give the amount in quite large spans of time. This makes buying home or property easy for the buyer.
- Meanwhile, you get the time to arrange funds. Buying needs a huge amount of money. Thus off the plan provides you to have one such.
- Pay according to today’s price - The big advantage of this investment strategy is you have to pay according to the current market price of the property. Though you are going to receive the property in future. This means you lock the property price even though it increases with time. This gives a great advantage to the buyer.
- Property value increases with time - As the property prices increase with time. So when you get your property after two years the actual market value of the property will be increased. Thus at this point, if you want to sell out the property you can sell it easily and earn good profits.
- Tax and stamp duty advantages - When you choose to buy property off the plan you don’t need to pay stamp duty. This saves hundreds of bucks.
- Few years of guarantee - In Australia, newly built properties come with seven years of guarantee which means the buyer should not worry about the interior or structural faults and mistakes. These all will be repaired and done by the builder. This is also a big advantage for buyers.
The advantages of buying off the plan are many but the risk associated with it is quite high. It’s like trusting something which doesn’t even exist. It might possible builder quit the town and run away after taking money from you. Builder goes bankrupt or instead of increasing the property value it decreases. Hence you should take advice from property valuer.
Hire residential property valuer Adelaide and get the right property valuation services. The experts know well about the industry they can suggest you which one to buy. Investing in real estate is a great idea under the guidance of property valuations Adelaide.