The state of Victoria offers excellent advantages for people looking to invest in off the plan property. One of the most significant of these advantages is the reduced stamp duty that comes when signing a contract on a property that has yet to be built. The stamp duty is applicable to the land that the property will be based upon but not on the building because it has not been built and therefore it is not necessary, the investor in this way can save extra money on top of various other savings that can be made.
Other savings that can be made include being able to get depreciation tax benefits on the building and the various fittings within the property. When purchasing the property as an investment you are able to qualify for such rebates, which enable larger savings on top of other things that can be had when buying ‘off the plan’.
One of the major initial benefits of purchasing ‘off the plan’ is the opportunity it gives you when you’re in a rising market. Instantly the investor starts to make capital gains because the contract for the price of the property is fixed before anything is built, which means that by the time everything is completed the market value of the building can have increased from the amount that you may have recently finished paying.
The breakdown of payments that are made in instalments throughout the building of the property enables whoever is investing to restructure their finances as they have a considerable amount of time before completing the whole payment at the end of the construction.
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