Investing in off the plan property is one way of generating
capital by using the natural momentum of the market. If you pick the right
time to invest in a property then you can have capital gains over and
above the amount of money that you have invested in a property. The way
this works is that when a contract is agreed the sum of money that will
be paid is made in light of the value of the property compared to the
current market prices.
If the market is rising by the time the development has been completed
it is possible that the property is worth considerably more than the amount
you have just finished paying for it. This makes off the plan property
a great tool for the investor looking to increase their net worth.
On top of the money that can be generated through the purchase, the investor
is also able to qualify for significant tax breaks. One of the most valuable
of these is the lower stamp duty that investors pay in Victoria. The state
rules for Victoria mean that stamp duty can be paid off over a period
of more than three months, which is the average time and also that the
stamp duty is much reduced because the property has not been built.
The value of land can be calculated based on the land itself and not on
the worth of the property since nothing has been constructed when the
contract is signed. This gives the investor a large saving and creates
an additional incentive for investing in off the plan housing.
Please follow this link to view listings: Off the Plan Investing