The government has confirmed that new builds and off-plan properties will be exempt from the upcoming tax changes for residential property investors. Therefore mortgage interest will likely continue to be deductible as a tax expense, and these properties will also be exempt from the extension of the bright-line test.
New build apartments and terrace homes also often have lower LVR requirements and potentially lower interest rates.
To read a full analysis of all these benefits CLICK HERE.
Buying properties off plan
What are the advantages?
- Put down initial deposit only – usually 10% of the purchase price
- Purchase price fixed for the duration of the contract
- Take advantage of market growth – growth is geared only by the deposit paid
- Time to plan sale of existing property prior to settlement of your new off plan apartment
- Time to raise finance
- No need to compete at auction
- Record low interest rates & excellent yields
- Options available for Non resident
- Low Maintenance and Management input – Minimal input
- Good facilities – pool, gym, etc.
- Modern designs and colours, insulation and heating
- Built under new building code
- Take advantage of the insatiable demand for new properties
- Good quality tenants
- Rental income generally higher on new property
- Tenancy terms generally longer on new property
- We can organise management of your new property