Buying off the Plan
OFF THE PLANS SALES PROPERTY
- Buying a house or unit before the building works have been completed is known as buying off the plan. In some cases, construction may not have started whilst in others it may only be partially built.
- Whether it is your first property, your principal place of residence, or an investment property, there are many benefits with buying off-the plan.
MORE BENEFITS when buying OFF THE PLAN
There are many financial benefits in purchasing off the plan properties.
- First Home Buyer Grant
- Stamp Duty Reduction
- Tax Benefits
First Home Buyer Grant
- First home buyer grant is an incentive from the state government for first homeowners for the purchase of an off the plan home.
- For contracts entered into on or after 1 July 2013 to build or purchase a new home, a payment of up to $10,000 is available for eligible first home buyers.
- Please see the information on state revenue office website http://www.sro.vic.gov.au
Stamp Duty Reduction
What is stamp duty?
- At a basic level,stamp duty is a tax imposed on numerous acquisitions, including selling real estate, cars and assets belonging to a business. It can also be imposed on home loans, gifts and some insurance.
- When buying real estate, the purchaser pays it
- You can read more about stamp duty and how it relates to your circumstance on http://www.sro.vic.gov.au
Tax Benefits- Depreciation
Deduction for decline in value of depreciating assets
- You can claim a deduction for the decline in value of certain items, known as depreciating assets, that you acquired as part of the purchase of your property or that you subsequently purchased for your property.
A depreciating asset is an asset that has a limited effective life and can reasonably be expected to decline in value over the time it is used. Examples of depreciating assets are freestanding furniture, stoves, washing machines and television sets.
Capital works deductions
- You may be able to claim a deduction for the construction costs of your property over a 25-year or 40-year period (a capital works deduction).
- You can claim a deduction if construction began after 17 July 1985 and the property is used for residential accommodation or to produce income
You can find more more information about tax benefits on investment properties at