One of the biggest advantages of buying off the plan is time. Unlike traditional property purchases with relatively short windows to round up the total finance, you will have at least 12 months, if not longer, to settle. Savvy buyers will take advantage of this extra time to save their pennies and reduce their borrowings. Remember however that if your financial position changes during the period that the property is under construction you may not be eligible for finance to complete the purchase.

If you dream of a new home but have nightmares at the thought of building one, an off-the-plan purchase may be the perfect compromise. Although you will not get to design everything as you would with a custom-built home, most off-the-plan developments allow some customisation of finishes and fixtures. Make sure your contract outlines what you can tailor and that you are clear on any additional costs.

Off-the-plan apartments are often pitched heavily at investors due to the tax benefits that come with depreciation on new properties and rental guarantees. Tax savings will depend on your individual circumstances, but generally the newer the property, the higher the depreciation allowance for the building and fixtures.

​Investors may also be offered attractive rental guarantees for a limited period. Make sure you do your homework on rental returns on similar properties in the area before accepting the developer’s terms. Be wary of over-inflated rental guarantees. Builders will sometimes promise a high-rent yield to lure investors, build the cost into the property price and then subsidise any gap themselves for a short period. When the rental guarantee expires, you may find the actual market rent falls well short of what you originally pocketed.

If investing, make sure you have the option to manage the property with your chosen property manager from the time you take possession

Many buyers get swept up on a wave of rising property prices when they hand over their deposit in exchange for a floor plan. Historically, property is a consistent long-term performer, but property prices can plateau and even wane at the mercy of economic factors.

Buyers also need to be wary of over-supply, which may devalue their property.

​Make sure you consider the bigger picture if buying off the plan. Research how many other developments are planned in the area and whether any increase in apartment numbers is justified by new or improved infrastructure, such as transport corridors, business precincts, universities or hospitals.

Remember that the property may decrease in market value over the time that it is being built. If this occurs you are still bound to purchase the property at the original contracted price.

We recommend purchasing from a reputable builder and take the time to research their previous projects. Do they use quality contractors? Do they deliver projects on time? Make a point of visiting some of their projects so you can assess the finished product first-hand.

Usually 10% of the value of a property at signing of the contract and then the balance of the deposit at settlement. Speak with us to discuss your deposit options. You may be able to borrow against the equity in your existing home or an investment property.

There are many different types of loan products with varying interest rates which will impact your repayment amount. Talk to us today about the products currently available that suit your lending needs, and we’ll calculate the repayments for you.

Most lenders offer flexible repayment options to suit your pay cycle. Aim for weekly or fortnightly repayments, instead of monthly, as you will make more payments in a year, which will shave dollars and time off your loan.

Depending on your State you may be entitled to a first home buyer grant when you purchase a brand new home. Contact our team today to see if you qualify.

There are a number of fees and costs involved when buying a property. To help avoid any surprises, the list below sets out many of the usual costs:

> Stamp duty — This is the big one. All other costs are relatively small by comparison. Stamp duty rates vary between state and territory governments and also depend on the value of the property you buy. You may also have to pay stamp duty on the mortgage itself.

> Legal/conveyancing fees — Generally around $1,250 – $2000, these fees cover all the legal requirements around your property purchase, including title searches.

> Building inspection — This should be carried out by a qualified expert, such as a building inspector, before you purchase the property. Your Contract of Sale should be subject to the building inspection, so if there are any structural problems you have the option to withdraw from the purchase without any significant financial penalties. A building inspection and report can cost up to $1,000, depending on the size of the property.

> Pest inspection — Also to be carried out before purchase to ensure the property is free of problems, such as white ants. Your Contract of Sale should be subject to the pest inspection, so if any unwanted crawlies are found you may have the option to withdraw from the purchase without any significant financial penalties. Allow up to $800 depending on the size of the property.

> Lender costs — Most lenders charge establishment fees to help cover the costs of their own valuation as well as administration fees. We will let you know what your lender charges but allow about $200 to $995.

> Moving costs — Don’t forget to factor in the cost of a removalist if you plan on using one.

> Mortgage Insurance costs — If you borrow more than 80% of the purchase price of the property, you may also need to pay Lender Mortgage Insurance.

> Ongoing costs — You will need to include council and water rates along with regular loan repayments. It is important to also consider building insurance and contents insurance. Your lender will likely require a minimum sum insured for the building to cover the loan.