Buying a property is the best way to avail good returns on investments but with a passage of time. However, as more people are turning towards real estate investment, it is not easy to get a good bargain and find the most suitable unit meeting your requirements and budget. Buying an off-plan dwelling, which is not built or completed yet is the easiest way to become a real estate investor. To invest your hard earned money in the most suitable opportunity, you will need to check floor plans and review price lists, construction schedule and architectural drawings along with developer reputation.
As I have already mentioned that off-plan properties are either under construction and not existed, inexperienced investors mistakenly assume it a risky option. To some extent they are right. When it comes to investing in real estate, huge money is involved. However, investors can minimise these risks after conducting a thorough background search to find a reliable real estate developer.
Here are some most sound reasons as to why you should buy off plan units to secure your money:
Brand new unused property
Who else don’t want to buy an unused and brand new lodging space for accommodation? If you have the same desires, there is no better option other than the off-plan project. Whether you decided to live there or rent it out, it will give you good profits in the form of regular rental income. Tenants will love the new property and ready to pay high rents.
Buying a unit in an under construction project will also give you a range of choices regarding floor plans, levels, colour scheme and aspects. You may have more opportunities to invest in a property that you like and want. You will not feel restricted to choose any option just because you don’t have options.
Better saving options
Making off-plan investment means more chances to save money. Developers often take several years depending on the size and nature of the project. This gives investors a significant timeframe to save money for final payments at the end of project completion. They don’t need to pay utility bills and other taxes as they are not living there. However, they need to pay fixed installments to fund the construction work.
Reduced repair and maintenance costs
Being brand new, it hardly needs any repair and maintenance soon after shifting there. As long as the residents take care of their lodging space and avoid doing intentional damages, they can reduce repair and maintenance cost.
Reduction in power bills
Newly constructed dwellings are constructed to meet the recent standards and regulations. They are fitted with latest power-saving appliances, which will help owners to control energy bills. Developers are also building energy rated buildings to conserve natural energy resources.
Small deposits with flexible payment options
Off plan developers also offer buyers flexible ways to make payments. They receive payments in the form of cash, bank guarantee or deposit bond. Instead of a variety of payment options, small deposit payments and mortgage options attracts a maximum number of buyers.
An off-plan unit purchase is affordable as compared to ready now units. If you observe final prices after completion of the project, you will see a significant price difference. Developers often increase the unit price when a project reaches near to completion or completed. The earlier you book, the better prices you will get and it will help you enjoy better returns on investment.
When you buy an under construction unit with an intent to rent it out, tax deductions will let you save thousands of dollars through depreciation. All you need is to hire a reputable quality surveyor to create a full depreciation schedule after you get the possession. This must be done before you rent it out. When you claim the whole depreciation benefits, it will lower your holding costs and save you more in tax.
Buying off plan properties is a good way to enter the real estate market. All you need is to invest your money in the right option to avail maximum benefits