Off The Plan Townhouses In Burwood East: An Investment Opportunity For Families and Professionals
If you’re thinking of buying a townhouse just outside Melbourne city, then consider going off the plan. More and more people are switching to semi-detached dwellings like townhouses for several reasons (e.g. price, maintenance, resale value) and are buying these properties off the plan.
What Does ‘Off The Plan’ Mean?
An off the plan property offers you flexibility and affordability, but if you want your new home right away then off the plan is not for you. Buying off the plan means entering into a contract with the developer before the building has been fully constructed.
Buying off the plan means waiting for your new home – but also potentially saving money, having more input in the design process, and being eligible for stamp duty concession.
What’s The Process For Buying Off The Plan?
After choosing your townhouse, you will generally put down a deposit and sign a contract. You can stay up to date with your property’s construction process throughout the building period.
When the property is constructed, you will usually have an inspection to check everything is in order before moving in, and finalise any outstanding costs.
The construction period is useful for saving money and getting organised before the home is ready.
Questions To Ask When Buying Off The Plan
When buying off the plan, there’s a lot to consider: what the market is like, how much time you need, where you plan on buying, how much input you want to have in the design, location, layout, and floor plan, and what you can afford.
Why Should I Buy Off The Plan?
In buying the property at the earlier stage of the construction process, you could potentially end up owning a property that is worth a lot more after completion.
As the market price of townhouses is inclined to increase, it makes sense to buy now and watch the value of your purchased property grow while you watch the physical property be built. You get the advantage of locking in the price at the current market value instead of the price at the end of construction, when the cost could potentially be much higher.
Time Is On Your Side
The time it takes to build also provides you with the time to save money and prepare yourself for a move. You can save more money during the building process and won’t need to take out such a big loan. This equates to lower monthly repayments.
Have Your Say
By investing before the property is physically created, you can have more of a say in terms of location, space, and design, especially if you have specific requirements for your new home.
As detailed by Consumer Affairs Victoria on their website here, the law in Australia makes sure your rights are protected when buying off the plan.
Stamp Duty Concession
If you plan on living in your new townhouse, you are eligible for off the plan stamp duty concession. When you buy in the state of Victoria, you must pay stamp duty or land transfer duty on your property, which is calculated based on the market value of the property or the purchase price (whichever is higher).
How Do I Calculate Off The Plan Stamp Duty?
Click the link to use the convenient calculator from the State Revenue of Victoria website to calculate your stamp duty.
There have been some recent changes to how stamp duty works in 2017. Off the plan stamp duty concession for contracts entered after July 1st 2017 will only apply to you if you intend to live in their property. For more information, see the REIV webpage.
What Happens During The Settlement Period?
By buying off the plan, you will have a greater time period between the initial contract and the settlement date. The settlement period is when you pay the outstanding balance of the property, receive your title deed and officially take ownership of your new home.
For more information, check the Consumer Affairs Victoria page.
How Much Will I Pay As A Deposit?
Usually the deposit for an off the plan property is approximately 10 per cent of the total price, with the remaining balance paid when the property is finished being built.
What Does Burwood East Have To Offer?
For those who want to live close enough to the city to get there when they want to, but far enough away from the smoke and skyscrapers that they can have some peace and quiet, then a suburb like Burwood East fits the bill perfectly.
Burwood East lies 17km east from the Melbourne CBD, in the state electorate of Forest Hill. This eastern suburb encompasses 4.3 square kilometres. Local history includes the traditional custodians of the land, the Wurundjeri Tribe, who occupied the land for around 40,000 years. You can read about the indigenous heritage here. The World Vision Australia National Office is also situated in Burwood East.
Burwood East is also the home of the Red Williams pear, developed by local orchardist Walter Mock in the 1930s, was so popular it was exported to Europe and North America.
A Family Lifestyle
According to the Australian Bureau of Statistics, as of 2015, the population of Burwood East was 10,723 with a median age of 40. Families are a big part of the area, with 74.9% of houses being family households.
Burwood East is safer than the average suburb in Victoria, according to RACV statistics.
Popular schools in Burwood East include Forest Hill College, Burwood East Primary School, Burwood Heights Primary School, and Blackburn English Language School.
The high-ranking university, Deakin University, has its largest campus located in Burwood. The campus features multi-story car parks, a motion capture facility, art gallery, gymnasium, bookshop, library, and more.
For parents of children with a moderate to profound intellectual disability, see the Burwood East Special Development School. The school has some great features, including a multi-sensory room, crafts centre, library, walking and bicycle track, playgrounds, a tranquil garden, and more.
Part of Burwood East lies in the Mount Waverley Secondary College school zone, which can get competitive, as lots of people want to buy in these kinds of zones for the privilege of attending certain schools.
Compare schools in Burwood East here.
Retail and Parks
The Kmart store in Burwood One Shopping Centre was Australia’s first ever Kmart store, and it is still the second largest Australia-wide.
There are a number of parks in the area with playgrounds and walking tracks. Burwood East parks include the Ballyshannassy Park, Burwood East Line Reserve Park, Witchwood Gully, and the East Burwood Reserve.
Public transport in Burwood East includes buses, trains, and trams, with the Burwood Highway part of the Melbourne tram network. The Myki card is used on Victorian public transport as a touch-and-go system to make travel easier and quicker.
An easy-to-use Journey Planner is available for those looking to use Burwood East’s trams and buses regularly.
Sports is important to many Victorians, and Burwood East is no different. The suburb features the Nunawading Basketball Centre, the Blackburn Cycling Club, the Burwood East Cricket Club , and the Burwood East Football Club , who compete in the Eastern Football League.
The Burwood East RSPCA is the largest in Victoria, including adoption services, vet clinics, training, pet sitting, grooming, and more. They even have an Animal Ambulance service for emergency pet care.
What Are The Potential Downsides To Buying Off The Plan?
The Waiting Period
While some might prefer a waiting period to save money or give them more time to prepare, others want their home to be finished as fast as possible. Look for a sunset clause in your contract; the sunset clause will give you a time limit that the developer must adhere to when constructing your property.
In rare instances, development might be cancelled and you will get your deposit back, but not your time.
It’s Not What You Imagined
Since you won’t get to see and touch the physical property until it’s finished, you run the risk of it not being entirely what you imagined on paper – but in this day and age, with the increasing use of virtual imagery to show buyers their home in 3D, from all angles, the risk of being disappointed is quite small.
How Can I Find Out More?
There’s more to know if you’re thinking of buying off the plan in Burwood East. Learn more about your options as a home buyer, or look at other off the plan townhouse properties and locations by browsing our website at your leisure.
Find out about:
Call us to talk to a professional and get all the information. You can also find us on Facebook or social media.