How long will it take for my off-the-plan property to be built?

This will depend on whether you have bought a house or an apartment. Houses generally take between 6 months and 18 months to build, whereas if the apartment is part of a block of units, construction could take upwards of two years before the development is complete. However, these are only rough guidelines: off-plan properties inevitably suffer construction delays, so there’s usually a clause in the building contract you’ll sign which details how unforeseen delays will be handled.

Is there government assistance for homebuyers purchasing their first off-the-plan home?

Yes – first homebuyers are offered a range of assistance measures by both state and Federal governments. These measures range from concessions or reductions in the amount of stamp duty payable by first homebuyers to cash grants offered under the First Home Owner Grant scheme and deposit guarantees provided under the First Home Loan Deposit Scheme.

What is a depreciation schedule when buying off-the-plan apartments or property?

A depreciation schedule is a detailed list of all items which can be claimed as tax deductions in a residential property which has been purchased for investment purposes. There are two basic sorts of depreciation – on the building itself (known as the ‘building allowance’) and on plant and equipment (which are removable items inside the building). The schedule will list each item (for example, the dishwasher, oven, water heater, carpets or other fixed items in a new home), with purchase price and a depreciation schedule showing how much can be claimed as a write-off for that item each financial year.

Can the value of my investment change between when I sign my contract and when it is finally built?

Yes – this is because the initial price for off-plan apartments or real estate can be set low as a developer tests the market and gauges the public’s appetite to buy property in that development. Once the majority of units and apartments are sold and available units become scarcer, a developer may increase the price of the last few remaining units. However, the reverse can also be true, with the price of units being reduced if sales disappoint and the public reaction is more negative.

Are rental rates generally higher for real estate off-plan property?

The rent that a brand-new apartment, unit or house will bring in is generally higher than a property that’s older or in a poorer condition. New properties can also attract premium tenants who are willing to pay a little bit more (up to 5% to 10% above other rental rates) to have a pristine living environment where everything is brand new.