Sydney is currently a buyers’ market, but this can actually make the choice of what to buy more difficult. Should you invest in an existing property, or choose off-the-plan for a brand new apartment? In the current environment, there are six major benefits to buying off-the-plan apartments in Sydney.
1. You’ll probably pay less in stamp duty
You could potentially save yourself many thousands of dollars by buying an off-the-plan apartment rather than an existing property. And for first home buyers, the NSW Government has eliminated stamp duty for homes up to $600,000 and provided stamp duty relief for homes up to $800,000. That could mean serious savings; for example, a $34,361 saving on a home worth $600,000.
2. You can save more while the property is being built
With an off-the-plan apartment, you’ll typically pay a 10% deposit and won’t need to make any more payments until your property is completed. This gives you the chance to persistently save while your apartment is being built, and pay more off initially to minimise mortgage interest payments over time. Even if you’re buying an apartment outright, you’ll be able to gain interest on your savings until the building process is finished.
3. You could be eligible for a First Home Buyer grant
If you haven’t bought a property before, you may be eligible for a $10,000 grant when buying a new property up to $600,000 in New South Wales. First home buyers entering into a contract to build may be eligible to receive a $10,000 grant for properties up to $750,000. Together with stamp duty savings, this could mean a significant amount off your brand new apartment in Eastlakes.
4. You’ll be starting with a perfect new apartment
Buying into a new development has a number of benefits. Within your luxury apartment you’ll have brand new fixtures and fittings, meaning less maintenance and a more beautiful lifestyle. You also probably won’t need to factor in any major renovations into your strata fees for many years, which is a direct advantage over older and pre-existing properties.
5. You’ll have access to state-of-the-art amenities
By buying off-the-plan luxury apartments in a development such as Waterfall by Crown Group or Infinity by Crown Group you’ll have the benefit of state-of-the-art swimming pools, gyms, rooftop gardens and other premium amenities in the very same building. You or your tenants will also live just minutes from world-class restaurants and retail options.
6. You may benefit from tax depreciation
If you are intending to buy and lease out a new off-the-plan apartment as a property investment, you may be able to claim its depreciation and interest payments against your tax return through negative gearing. This could save you significantly in tax payments each year while building up your investment portfolio.