Buying off-the-plan: tempting tax benefits but loaded with risk
Nobody likes paying stamp duty and most states offer generous savings for off-the-plan property purchases but the risks associated with buying before construction begins are plentiful and significant.
All the planning in the world may not be enough if structural flaws appear in the years after a new build is completed. (Image source: Shutterstock.com)
Every property cycle upturn is accompanied by developers marketing planned new apartments and units as a great opportunity to benefit from the property tax system.
At first glance, it looks like a compelling concept. Buying before construction is complete allows purchasers to avoid a substantial proportion of stamp duty.
Stamp duty can be a weighty cost.
On an established $600,000 property, an investor would pay $32,695 in Victoria, $21,872 in…
