Are you wondering whether or not you should a buy an off the plan townhouse in Melbourne? Purchasing off the plan isn’t for everyone, but it certainly can come with a number of benefits.
What is it?
First, what does it mean to buy a YepHome off the plan townhouse in Melbourne? Buying an off the plan townhouse means you’re signing on to purchase a home that has not yet been built or is still in the process of being built. Since there is no physical property available to inspect, most buyers will make their decision on their new property based on renders of what the property will look like when it’s finished.
What are the benefits of purchasing a new home or apartment off the plan?
Victoria’s house prices have gotten very expensive and this is where purchasing an off the plan townhouse in Melbourne can provide you with an advantage. The primary benefit of buying a YepHome off the plan townhouse in Melbourne is that you agree on a price prior to the building being completed. Often an off the plan townhouse in Melbourne will be worth more after building in completed, which means you could pay a lot less for your property just by buying it early. You’ll generally only need a small deposit to secure your property as well.
Stamp duty discounts
A huge advantage of buying a YepHome off the plan townhouse in Melbourne is that you will receive stamp duty discounts on your purchase as the majority of states offer discounts on homes that are newly constructed. When purchasing an off the plan townhouse in Melbourne, stamp duty only applies to the land value, not the value of the home as well which can add up to a significant saving.
Brand new condition
Another great benefit of buying an off the plan townhouse in Melbourne is that it will be in a near new condition. Newer homes often require much less in terms of maintenance costs, repairs and utilities. Because they’re a lot more energy-efficient, most newer homes will have minimal energy requirements compared to older homes.
It gives you more time
Buying a home that is still in the process of being built gives you more time to sort out your finances. You’ll generally only need to put down a small deposit to secure your property which means you’ll have a number of months to work out finance with your lender.
Are there risks?
All real estate purchases come with some level of risk involved. The main risk with purchasing a property off the plan is that the property could be worth a lot more at the time you buy it then it might be when it’s completed. A price drop could mean that your stuck with your new property. If you were hoping to buy and then sell quickly for a small profit then this might not be the way forward for you.
Another serious risk is that the developer might go bankrupt and not complete the work. This has happened a number of times before and can cause serious headaches for buyers who lose their deposits. If you’re thinking about buying make sure you do your due diligence and check references and certifications closely. Is this a good builder? Are they financially stable and capable of performing the work? For an insight into how trustworthy they are, check out reviews online. You’ll want to make sure that you’re not going to run into any trouble down the road or lose any money.