Purchasing real estate before or during construction, is
known as
‘Buying
off the plan’. The benefits of buying off the plan
are beneficial to the investor and the developer of the property.
Why do developers sell their properties 'Off The Plan'?
Developers are sometimes required by their financiers to 'pre
sell' a small proportion of their new properties before construction
begins. To achieve the pre-sales they offer their new properties
for sale 'off the plan' via a licensed real estate company
like Pacific Lifestyle Property.
Why do investors ‘Buy off the Plan’?
The benefits investors receive are numerous. If the
property they buy off the plan, they may realise a substantial
gain during the construction period. In area's with continuing
strong demand for property, for example the Gold Coast, our
valued clients who have purchased an apartment 'off the plan’
have enjoyed considerable increases in capital value, during
and after construction.
Depreciation benefits could mean you pay less tax
“Depreciation is essentially a tax deduction the government
provide to property investors in recognition of the wear and
tear of income producing property."
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Purchasers who
'Buy
off the plan' qualify for significant depreciation tax
savings, that are generally far greater than those available
on similar existing buildings, if the property is purchased
for income producing purposes. Depreciation expenses that
can be claimed include building, furniture and fittings.
