Property Investment Tips: Could it be worth buying off-the-plan?

By the resi financial blog team, 30 September 2014

Property Investment Tips: Could it be worth buying off-the-plan?

When it comes to buying investment property in Australia, the world is your oyster. From apartments to units, there's a lot to choose from, which can at times be intimidating for even the most seasoned buyer. However, one thing that could help you narrow down your search is to buy a brand new off-the-plan property.

Taking out a construction home loan and building your own piece of real estate for your portfolio may seem like a lot of effort. But there are also a number of benefits that could make it all worth it in the end. Here are some great reasons to consider building investment properties off the plan. 

Delayed home loan repayments

When you undertake an off-the-plan project, you're only required to put down a 10 per cent deposit before construction begins. Following this, the rest of the money is due at the time of settlement - which can sometimes up upwards of 12 months away, depending on the type of project you're investing in and how construction is going along. 

Therefore, there's a degree of freedom that comes with having this amount of time up your sleeve to begin working towards your financial goals and saving up for the future. This also means you can secure a piece of real estate in the market with less, helping you reserve a spot in the development. 

Potential for fast capital gains

Investment in off the plan property is a good idea for more reasons than simply delaying your repayments. When you purchase real estate this way, you lock in the current market price of the property, which is then paid off when the project is completed. 

However, the potential for the property's value to increase during construction is something to take into consideration. It's possible to secure a piece of real estate for a low price and watch it grow in value over the time it's being constructed. 

Therefore, taking your time and researching the expected growth areas before committing to the investment in an off the plan property could be a lucrative undertaking. Of course, this also means the opposite could occur and your investment could lose value during construction - which highlights the importance of taking your time and seeking advice before committing. 

Purchasing off-the-plan is a great alternative to buying already established real estate, giving you more freedom of choice in the matter and ensure you get the right property for your portfolio. 

If you're interested in taking out a home loan and  investing in your local real estate market, now could be the time to get in touch with the team at resi. Their expertise about mortgages will help you make an informed financial decision, aiding your property goals and helping you achieve market success. 

Categories: Home Loans, Property Investment