Off-the-plan properties are off the menu for investors

Adam Smith 27 July 2017

house keys sale1Investors favour established properties over new off-the-plan builds, research has revealed.

The Mortgage Choice Investor Survey has found that 76.9% of respondents either had bought or intended to buy an existing property, versus 23.1% who favoured a new build.

The result is a slight rise on last year’s survey findings, when 75.8% of investors said that they intended to buy an existing property.

“While it's only a small rise each year, this is a trend that I expect to see continue over the coming years," Mortgage Choice chief executive John Flavell said. "I believe that we will continue to see an increasing proportion of investors choosing established dwellings over new builds.”

Flavell said that there were reasons why an investor might choose an established property over an off-the-plan build.

“Firstly, established dwellings are ready to buy and move tenants into straight away. Meanwhile, investors who purchase an off-the-plan property may have to wait several years before they can access the property and, in turn, generate income from potential tenants,” he said.

Flavell said that established homes could also be more affordable, depending on the location, and that investors also had the option of adding value through renovations.

“Lastly, we have seen a few examples where the valuation for an off-the-plan property has come back short, leaving borrowers scrambling to make up the difference. Investors are acutely aware of this and, as such, are looking at all their property options before heading down this path,” he said.

The findings come following an announcement in June that the NSW Government will axe stamp duty exemptions for off-the-plan properties.

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Name Product Interest Rate (p.a.) Comp Rate^ (p.a.) Application Fee Ongoing Fees Max LVR Monthly Payment Short Description
3.99%
4.02%
$0
$0 p.a.
80%
A loan with a special investment rate and an offset account.
3.89%
3.91%
$0
$0 p.a.
80%
Package your owner-occupied loan with your investment loan and enjoy low rates for both.
3.99%
3.99%
$0
$0 p.a.
80%
Investors can take advantage of a discounted standard variable rate.
3.88%
3.88%
$0
$0 p.a.
70%
A competitive investment loan with a low rate that requires a 30% deposit.
3.99%
4.00%
$0
$0 p.a.
80%
A low-fee variable rate investor loan with a fast online application process.
4.19%
4.21%
$0
$0 p.a.
80%
Pay no application fee on this low variable rate investment home loan.
3.99%
4.62%
$395
$0 p.a.
80%
Fix your interest rate and pay principal and interest repayments on your investment.
3.99%
4.02%
$0
$0 p.a.
80%
An investment loan with a competitive interest rate and no ongoing fees.
4.34%
4.87%
$0
$0 p.a.
80%
Lock in a low 2-year fixed rate with this interest-only investment loan.
4.14%
4.14%
$0
$0 p.a.
80%
An investment home loan with competitive rate and 100% offset account.
4.44%
5.37%
$0
$395 p.a.
90%
Lock in the interest rate on your investment purchase for 3 years and enjoy the benefits of a package home loan.
4.19%
4.59%
$0
$395 p.a.
90%
Enjoy all the benefits of a full-featured package investment loan, including a 100% offset account.
4.11%
4.01%
$0
$0 p.a.
80%
Enjoy a fast application process and flexible repayment options with this fixed rate investment loan.
4.54%
5.58%
$600
$8 monthly ($96 p.a.)
95%
Get a competitive 3-year fixed rate to buy your next investment property.
4.39%
4.42%
$0
$0 p.a.
80%
An interest-only loan for investors. Access equity to further your investment opportunities.
4.29%
4.05%
$0
$0 p.a.
80%
This fixed rate investor loan has limited fees and flexible repayment options. 100% online application process.
4.79%
5.44%
$0
$395 p.a.
90%
Package your 4-year fixed rate investment loan and pay no application fees.
4.09%
4.11%
$0
$0 p.a.
90%
Access a fee-free offset account and a special interest rate for investors.
4.55%
5.39%
$499
$0 p.a.
95%
Enjoy a competitive 3-year fixed rate with no ongoing fees.
4.24%
4.28%
$0
$0 p.a.
80%
Borrowers can borrow up to $750K with 2 years lock in rate for their investment property.
4.19%
5.37%
$0
$395 p.a.
95%
Plan ahead by locking in your rate for 3-years on this investor loan. $1,500 cash back available for refinancers. Conditions apply.
4.65%
4.69%
$600
$8 monthly ($96 p.a.)
90%
Save on a no-frills home loan that offers a competitive rate without the bells and whistles.
4.29%
4.31%
$0
$0 p.a.
80%
A Simplifier Home Loan with no application fee or ongoing fee.
5.59%
$0
$395 p.a.
90%
Package your home equity loan to save on rates and fees.
5.79%
5.93%
$600
$8 monthly ($96 p.a.)
95%
A competitive rate to help you purchase your next investment property.
4.44%
5.53%
$0
$395 p.a.
90%
Enjoy a 2-year fixed rate with no establishment fees or annual credit card fees, all for an annual package fee of $395.
4.39%
5.51%
$0
$395 p.a.
95%
A competitive 2-year fixed rate to help you invest in property.
4.64%
4.95%
$0
$299 p.a.
80%
A loan with no application fee.
4.59%
5.37%
$0
$395 p.a.
95%
Enjoy the stability of an investment home loan rate locked in for 5 years.
4.39%
4.70%
$0
$198 p.a.
90%
4.24%
4.55%
$0
$299 p.a.
80%
A loan with no application fee and borrow up to 80% LVR.

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