Buying an apartment can involve buying one that is complete and brand new or already lived in, or one that has not yet been built or is under construction, which is called an off-the-plan purchase and is common practice in apartment buying.
What is off-the-plan?
Essentially the property is not yet built, or is in the process of being built but is not yet complete. From purchasing off “artist impressions” (computer generated images) to nearing completion you can purchase off-the-plan and there are plenty of benefits to purchasing at this stage.
Why buy off-the-plan?
Buying into a brand new building can be safer as you are guaranteed no wear and tear and no-one has previously lived in or owned your property. For investors, purchasing or investing outside of your local market and having the flexibility to purchase in another state without having to ‘inspect’ the property is not only time saving, but you can purchase knowing what to expect without physically being there. New properties offer the greatest amount of depreciation savings in year one, allowing you to reduce your taxable income. You can claim on the building depreciation as well as the internal fittings and fixtures, and over the life of your investment. This can give you a significant tax deduction.
When purchasing off-the-plan there is the added bonus of only needing to provide a small deposit, with the balance of payment due when the building is complete, rather than requiring a mortgage straight away to purchase your apartment.
Many developers have built apartments before. For peace of mind, you can request details on past projects and potentially look through one of their previous developments.