Buying off the plan offers many benefits for owner occupiers and investors, but you need to be aware of the potential risks in the current property and lending environment.
The benefits for buying off-the-plan for investors include better depreciation allowances for new properties and the cash flow advantages associated with negative gearing. If you’re an owner occupier, the fact your home is brand new will reduce maintenance issues for years and it’s often more desirable knowing nobody has lived in your house before.
However, you need to select your off-the-plan property very carefully and the following are the key factors for consideration:
1. Quality developers
Buy from a developer that has a proven track record in building high quality housing. Marshall White is very careful to only represent builders who have a strong history in delivering stand-out developments which stand the test of time.
2. Blue Chip Locations
A development clearly targeting premium buyers in prime locations is the best bet for both investors and owner occupiers. While these are not the average off-the-plan offerings, they are the only developments represented by Marshall White.
3. Work Closely with Your Bank
Changes in the property market and the changing lending restrictions by the banks means you need to have a good relationship with your bank manager. Make sure you have allowance for any potential variations and a plan for various scenarios.
Here are some excellent examples of off-the-plan properties that tick all the boxes:
Metrobuild is one of Melbourne’s most trusted prestige builders and the company’s latest development, Hawkseburn House, is a boutique offer with only 26 residences. Stunning design by CBG Architects and dual car garages will make this development highly attractive to owner-occupiers.
Designed by Carr Architects, the “Sky Home” Penthouse has 360 degree views over Melbourne. Over 1000sqm of space the home features private lift, infinity lap pool, spa, sauna, gym, and living spaces over 2 levels.
Set in prime position in Brighton, is this pair of luxurious residences offering all the features of a bespoke, stand-alone home. Rumpus rooms connect to north facing balconies with ocean views. In each residence, a simple door cleverly conceals a lift that accesses all levels. The basements accommodate up to 5 cars per residence, both include a large lobby, multi-media room, a wine cellar and gymnasium.
“The Wilson” is a pair of stunning contemporary residences located in a highly desirable Glen Iris location. These four bedrooms and three bathroom homes feature three-metre high ceilings, a private garden with large entertaining deck and double garage complete with a loft-style 4th bedroom with walk in robe and en-suite.