Why more and more Canberrans are buying off the plan

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The concept of buying a home that hasn’t even been built, might cause hesitation among some. And yet more and more first home buyers, investors and down sizers are discovering that it can also be the best purchasing decision they ever make.

Derek Whitcombe, Director of Residential Project Marketing at Colliers International, believes it’s a trend that will continue to flourish thanks to Canberra’s unique property market.

“Because we have the lowest density of all capital cities in Australia, developers are being presented with opportunities to revitalise inner-city areas with residential apartment developments,” he points out.

“Like Nova in Dickson. Buyers who wouldn’t normally be able to afford a brand-new home in a highly sought after inner-city location, now have the opportunity to do so.”

As the ACT Government continues to invest in Canberra’s infrastructure, through the light rail along Northbourne Avenue and new business, residential and leisure developments, Derek believes that off the plan sales will continue to provide these unique benefits:

Capital growth

Because an off-the-plan purchase means you can lock in the ownership of a property without having to settle for an extended period of time, there is the possibility of making gains through capital growth. “In prime inner-city areas such as Dickson, Braddon or Kingston you can expect potential market increases of up to 10 per cent per annum,” Whitcombe says. “This will increase the value of your property significantly.”

Time on your side

A long settlement period means you have some breathing room to take care of your investment, or to organise to sell your current abode if you intend to be an owner-occupier. You can also use the time to save money and reduce the amount of finance you will need to borrow.

Government incentives

“One of the major benefits to investors when buying off the plan is that stamp duty is tax deductible in the ACT,” Whitcombe says. “There is also more tax depreciation available on new properties, meaning you can maximise benefits and improve after-tax cash flow.” If you’re a first-home buyer, you are also eligible for the ACT government’s First Home Owner Grant of $7000.

The best choice

Getting in early allows you to choose your ideal location within the development – including best views or configuration. Most developments also allow you to select from a range of colour schemes, finishings and fittings so that you can customise your apartment.

Lower power bills

Because all new apartments must meet stringent energy efficiency requirements under the Australian Building Code, your off-the-plan home will have the latest power-saving appliances and energy systems on the market. So you can expect a lifetime of lower energy bills.