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

Adam Smith 27 July 2017 NEWS

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.

Latest home loans headlines

Compare investment home loan rates

Rates last updated May 21st, 2018
$
Loan purpose
Offset account
Loan type
Your filter criteria do not match any product
Name Product Interest Rate (p.a.) Comp Rate^ (p.a.) Application Fee Ongoing Fees Max LVR Monthly Payment Short Description
3.99%
3.99%
$0
$0 p.a.
80%
Refinance to this loan and you could get $1,000 in your USaver account (offer conditions apply). Get a discounted, low-fee investor loan from a convenient online lender. 20% deposit required.
3.99%
5.17%
$600
$0 p.a.
90%
Competitive rates for fixed for 3 years with redraw facility.
3.88%
3.88%
$0
$0 p.a.
70%
You'll need at least a 30% deposit to get this low investor rate. 100% online application process.
3.89%
3.89%
$0
$0 p.a.
70%
Investors with a 30% deposit can get this low rate property investment loan.
4.09%
4.79%
$0
$395 p.a.
90%
Buy your investment property and set your repayments for the first year. Available with a 10% deposit. Available in QLD, NSW and ACT only.
4.15%
4.76%
$600
$0 p.a.
90%
A competitive rate with no ongoing fee and borrow up to 90% LVR.
4.14%
4.14%
$0
$0 p.a.
80%
Investors pay no application or ongoing fees on this loan from an innovative online lender.
3.99%
4.62%
$395
$0 p.a.
80%
Investors can enjoy flexible repayments and an easy application process with this pioneering online lender.
4.24%
4.60%
$0
$0 p.a.
90%
Fix your investment repayments for 1 year. You can get this loan with a 10% deposit. Available in QLD, NSW and ACT only.
4.50%
4.82%
$600
$0 p.a.
90%
A variable interest-only loan to fund your investment. Get this loan with a 10% deposit.
4.09%
5.28%
$0
$395 p.a.
90%
Lock in a competitive investment rate and combine your loan with a credit card and transaction account for extra savings. Package fee applies.
3.99%
4.93%
$0
$0 p.a.
95%
A low deposit investment loan with a discounted, competitive rate from one of the big 4 banks.
4.19%
5.49%
$600
$8 monthly ($96 p.a.)
90%
Lock in your investment repayments for 3 years with one of the big 4 banks. Available with a 5% deposit.
3.99%
4.02%
$0
$0 p.a.
80%
Investors can enjoy flexible repayment options and pay no application or ongoing fees.
4.65%
4.69%
$600
$8 monthly ($96 p.a.)
90%
You can get this variable investment product with a 10% deposit. The loan has limited fees.
4.55%
5.39%
$499
$0 p.a.
95%
Fix your investment mortgage repayments for 3 years. Available for investors with just a 5% deposit.
4.29%
5.39%
$0
$395 p.a.
95%
Enjoy advantage package discounts on financial products on this investor mortgage. $1,500 cashback offered to refinancers. Conditions apply.
4.79%
5.44%
$0
$395 p.a.
90%
Pay off your investment knowing your exact repayments for the first 4 years. Get this loan with a 10% deposit.
4.29%
4.31%
$0
$0 p.a.
80%
A variable rate loan for investment. Suitable for customers borrowing $1 million or more to buy a property.
5.59%
$0
$395 p.a.
90%
Make interest-only repayments and unlock equity in your home. Combine your mortgage, credit card and transaction account for discounts.
5.79%
5.93%
$600
$8 monthly ($96 p.a.)
95%
Purchase an investment property with a variable rate mortgage from one of the big 4 banks. No settlement fee.
4.09%
5.46%
$0
$395 p.a.
90%
Get 5-15% discounts on insurance products with this package investment loan from CommBank. Available with a 10% deposit.
4.19%
5.47%
$0
$395 p.a.
95%
Fund your investment with a low deposit package loan from ANZ. Bundle your loan with credit card and bank account for discounts.
4.54%
4.85%
$0
$299 p.a.
80%
Borrow $1 million or more and maximise your investment strategy with this interest-only mortgage.
4.89%
5.50%
$0
$395 p.a.
95%
A low deposit package investment loan. Fix your rate and plan your repayments for years in advance.
4.39%
4.23%
$0
$198 p.a.
70%
Fund your property investment with this fixed rate mortgage which includes a 100% offset account. 30% deposit required.
4.24%
4.55%
$0
$299 p.a.
80%
A loan for investors borrowing $1 million or more. The product includes a 100% offset account.

Compare up to 4 providers

Aussie Home Loans Logo

Enter your details below to receive an obligation-free quote from an Aussie home loans expert today

finder.com.au guarantees the privacy and security of your details

Applications are subject to approval. Conditions, fees and charges apply. Please note that you need to be an Australian citizen or permanent resident to apply.

Credit services for Aussie Select, Aussie IQ and Aussie Optimizer products are provided by AHL Investments Pty Ltd ACN 105 265 861 Australian Credit Licence 246786 ("Aussie"), and its appointed credit representatives. Credit for Aussie Select products is provided by Residential Mortgage Group Pty Ltd ACN 152 378 133 Australian Credit Licence 414133 (“RMG”). RMG is a wholly-owned subsidiary of the Commonwealth Bank of Australia ABN 48 123 123 124 AFSL and Australian Credit Licence 234945. Credit for Aussie Optimizer products is provided by Perpetual Limited ABN 86 000 431 827 (Lender). Credit for Aussie IQ is provided by Macquarie Bank Limited ABN 46 008 583 542 AFSL and Australian Credit Licence 237502. Home loans issued by the Lender are serviced by Macquarie Securitisation Limited ABN 16 003 297 336, Australian Credit Licence 237863 (MSL).

Aussie is a trade mark of AHL Investments Pty Ltd. Aussie is a subsidiary of the Commonwealth Bank of Australia ABN 48 123 123 124. ©2018 AHL Investments Pty Ltd ABN 27 105 265 861 Australian Credit Licence 246786.

By submitting this form, you agree to the finder.com.au privacy policy and the Aussie privacy policy.

Aussie Home Loans is both a lender and a mortgage broker, and offers a range of services.

  • FREE Suburb and Property Report with every appointment.
  • Access 3,000+ loans from over 20 lenders.
  • Get expert help with your loan application, including paperwork and eligibility.
  • Over 1000 brokers who are able to help you in your local area.

Aussie Home Loans Lender Logos

The Adviser’s number 1 placed mortgage broker 5 years running (2013-2017)

Image: Shutterstock

Get more from finder

Ask an Expert

You are about to post a question on finder.com.au:

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com.au is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder only provides general advice and factual information, so consider your own circumstances, read the PDS or seek advice before you decide to act on our content. By submitting a question, you're accepting our Terms and Conditions and Privacy Policy.
Ask a question
Go to site