Considering Off-the-Plan Apartments as Your First Investment

For those in the early stages of their career and contemplating the purchase of a new property, turning it into an investment opportunity might be a strategic move. While many individuals traditionally wait until after securing their first or second home before delving into real estate investment, you could potentially initiate this journey much earlier. However, it's crucial to acknowledge that venturing into property investment is a significant undertaking. Seek advice from a financial advisor to align your vision with sound financial planning.

Investing in Off-the-Plan Apartments

Amidst discussions about the viability of home ownership as a sound investment, the notion of transforming your first home into an investment property becomes an interesting proposition, especially in the context of off-the-plan apartments. By converting your home into an investment property, you can leverage factors like less-than-perfect credit, a dynamic lifestyle and limited responsibilities into a lucrative investment opportunity. Achieving this requires a combination of financial acumen and real estate expertise.

The concept of making your first home an investment property challenges conventional ideas of personal finance. While the standard financial trajectory for an average Australian adult might involve transitioning from education to employment, renting an apartment, moving towards marriage and homeownership, it's essential to consider alternative paths. If you're a 22-year-old graduate with a stable job, waiting until your 30s or 40s to delve into real estate might not be the most prudent choice.

Here are 5 compelling reasons why entertaining the idea of investing in real estate, specifically off-the-plan apartments, while you're still young could be advantageous.

1: Embracing Risk in Your Youth

Youthfulness and independence offer a unique set of opportunities. As a young professional, you have the flexibility to set your own rules, choose your living space, make discretionary purchases and travel freely. However, this lifestyle might lose its appeal over time, especially if you have broader financial goals. The funds currently spent on a vibrant lifestyle in a modest apartment could potentially be redirected towards building your investment portfolio. Learning effective money management at this stage could enable you to accumulate sufficient funds for a down payment on an off-the-plan apartment.

2: Diversifying Income Streams

Purchasing a property with the intention of renting it out provides an immediate avenue for generating income. Once you secure tenants, the profits can be reinvested in your property or used to settle other financial obligations.

3: Financial Advantages of Buying Off the Plan

Exploring the pros of buying off the plan, several financial advantages come to light. These include the potential for deferring stamp duty, allowing off-the-plan buyers to postpone payment for up to 12 months after signing the agreement or until the property is completed, depending on the state regulations. In some states, like Victoria, there may even be an off-the-plan duty concession. This delay in stamp duty payment provides financial flexibility and could be advantageous for those planning their finances around expected windfalls.

4: Enhanced Control in the Building Process

Investing in off-the-plan apartments often grants buyers more control in the building process. Depending on the developer, you may have input into selecting finishings and fittings, allowing a personalised touch to your investment. This increased level of control can be appealing for those seeking a more tailored and unique property ownership experience.

5: Time for Mortgage Arrangement and Financial Planning

Buying off the plan offers a unique advantage in terms of time. While you need to pay the deposit to secure the agreement, the period until completion provides a window to arrange a mortgage with a lender. This extended timeframe can be particularly useful, giving you more flexibility than purchasing an already established property. It becomes especially valuable if you anticipate financial windfalls in the coming months, allowing you to plan and secure your mortgage more strategically.

Making informed decisions and considering these factors can position you to embark on a successful journey into real estate investment, specifically in the realm of off-the-plan apartments.

*Please refer to the Federal and State Government websites for further information. Terms and Conditions apply to any other promotions that may be contained within this communication. Please enquire within and check with the vendor and agent for further terms and conditions. Only one promotion can be used per purchase and can not be used in conjunction with any other promotions. The information contained herein is given for general information purposes only and it is subject to change. Readers, viewers and consumers are advised to perform their own research and investigations and obtain their own financial, legal and other advice. The information and materials do not form any representation by any vendors or agents of any vendors and may include third-party opinions that do not represent the opinion of any vendor or agent. They do not form part of any contract of sale and they do not constitute legal, financial, real estate or other advice and must not be regarded or relied upon as such. No warranty is given either expressly or implied and the vendors or agents do not assume liability for negligence or otherwise with respect to the contents herein. Any plans are yet to have had their structural and services review so are subject to change prior to completion of construction. All plans, dimensions, areas and particulars herein whether by measurements or visual representation are approximate only, for general information only, and do not constitute any representation by the vendor or its agents or representatives. They do not form part of any contract of sale. Changes will undoubtedly be made during development and dimensions, fittings, finishes and specifications are therefore subject to change. Any furniture, goods and chattels depicted in this document are not included with any sale. Prospective purchasers or lessees are advised to not to rely on the information contained herein and to satisfy themselves as to the accuracy of all information given by making their own inspections, searches, inquiries and advises or as is otherwise necessary. The vendor or its agents or representatives will not be responsible for any error or misdescription which may appear. Further, the vendor or the developer or their agents or representatives do not represent, warrant and/or guarantee that the integrity of this communication has been maintained or that the communication is free of errors, virus, interception or interference. Usage of this or any other websites and materials and any associated website or material is subject to further terms and conditions.