One avenue that has gained increasing popularity is purchasing off-the-plan industrial units. This strategy offers a range of benefits that make it an attractive option for those looking to enter the market.
Modern Design
A new warehouse can offer benefits such as energy-efficient systems, advanced security measures, optimised floor layouts, and compliance with the latest safety regulations. These features not only enhance the operational capabilities of the unit but also contribute to long-term cost savings through reduced maintenance and utility expenses.
Investors can leverage the appeal of a brand new, up-to-date warehouse when attracting tenants or positioning the property for resale in the future. Modern facilities are often more attractive to businesses seeking efficient and streamlined operations, making the investment more marketable.
Market Entry into Popular Areas
Investing in established areas with high demand can be a challenge due to limited availability and high prices. Off-the-plan industrial units present a unique opportunity to buy into areas that might otherwise be difficult to access. By committing early in the development phase, investors can secure prime locations and benefit from the potential growth of an up-and-coming neighborhood.
Time to Save: Pay Only 10% Upfront
Buying off the plan offers the chance to secure a property with a nominal holding deposit, usually ranging from $2,000 to $5,000. Upon exchange, a deposit of 5% to 10% of the total purchase price is usually required. This extended period between the initial deposit and project completion allows ample time to save, strategise, and effectively manage finances..
Greater Tax Deductions
Investing in a new commercial industrial unit brings with it a range of tax advantages. Governments often provide tax incentives to encourage investment in new developments, including deductions on depreciation for fixtures and fittings. These tax benefits can significantly enhance the overall return on investment, making off-the-plan purchases an appealing option for savvy investors looking to maximise their financial gains.
Capital Growth
One of the most attractive aspects of off-the-plan investments is the potential for capital growth even before the property is completed. As the market evolves and property values increase, investors can witness their investment appreciating in value from the time of purchase to settlement. This unique opportunity allows for substantial gains and positions investors to benefit from the projected growth of the market.
As the real estate landscape continues to evolve, off-the-plan investments stand out as a dynamic option for those looking to make strategic moves in the commercial property market.
Interested in purchasing an off-the-plan industrial unit? View our available projects or contact Parkside Commercial Real Estate.
