Why buying off-the-plan is 2023-2024’s golden opportunity

The most significant advantage of buying off-the-plan in any normal market is that you agree on the purchase price now, before the building has been completed.

However, a perfect storm of events has seen even more advantages of buying off-the-plan come to light.

The gap between house prices and apartments grew over the pandemic, which means the pricing of apartments is currently looking much more affordable than houses.

Rents are on the upswing, and as more migrants enter the market, there is a significant undersupply anticipated for the next few years as developers work to complete projects that were delayed during the lockdowns.

As property prices could increase substantially during the time it takes for the developer to build the home, you could well be looking at a scenario where by the time you move in, your property will be worth more than the purchase price.

Investors who place a deposit today on an off-the-plan apartment will likely have already made money by the time their property settles in 2-3 years.

• Affordability in prime locations

New apartments offer the opportunity to buy into a premium location at a much more attractive price point than a house. More and more, you find new apartments being constructed in prized suburbs close to public transport – areas which were previously only comprised of standalone houses. In Sydney for example, a house in a North Shore suburb could set you back $2-3 million, but an apartment in the same suburb is significantly more affordable.

• Low Maintenance

Apartment owners have substantially lower maintenance than house owners, with strata fees in place to manage the building and gardens.

• More design choice

Owner occupiers who buy off-the-plan have the freedom to choose their preferred colour scheme, floorplan, level or views to suit their lifestyle and state.

• Positive cashflow and rental yields

Given that apartments often offer better rental yields than houses, you can enjoy more cashflow, which is welcome news in this tight economy.  Off-the-plan apartments also offer full tax depreciation benefits and the ability to ‘buy time’. That is, you can pay your 10% deposit and have time before you settle to save the remainder of your deposit.

• Save tens of thousands with government incentives

For first home buyers and owner occupiers, some states and territories offer incentives for buying off-the-plan. Concessions on stamp duty and government grants are the most common incentives offered and can add up to savings of tens-of-thousands of dollars.

• It’s a landlord’s market

You only need to look at the figures to realise just how much landlords are cashing in, with median rent for apartments fast outstripping housing rents.