BUYING Frequently ASKED QUESTIONS
Here is a selection of helpful answers to questions commonly asked by those looking to purchase a Finbar apartment.
Why live in a Finbar apartment?
- Finbar apartments are in desired inner-city locations that are in closer proximity to the Central Business District, which reduces the reliance on car ownership and places more emphasis on a healthier and more sustainable lifestyle of commuting shorter travelling distances on foot and public transport. Through the reduction of commuting, Perth’s residents will improve their lifestyles by having more time to pursue leisure activities and enjoying the local amenities located right on their doorstep.
- Finbar apartments in desired inner-city locations are often closer to popular attractions and amenities that provide a convenient and carefree way of life that is a characteristic to any cosmopolitan lifestyle.
- Finbar apartments in a choice inner-city location are generally more affordable than houses in the same location therefore, can help first home-buyers and investors secure a property at a more competitive price offering great value for the purchaser.
- Many of Finbar’s apartments need less maintenance work than houses thus, offering a convenient and cost effective lifestyle for residents. Gardening, pool cleaning and outdoor maintenance are all taken care of by the strata manager.
- Living in an apartment complex with other residents provides a greater sense of belonging to a community where residents can celebrate the rich cultural diversity.
- Security is far greater in an apartment complex as there is a strata manager taking care of the complex's security needs. Residents are also around to witness any suspicious behaviour that may prevent unfavoured activities. This ‘Lock & Leave Lifestyle’ is ideal when choosing to live in inner-city locations.
- With the shifting demand towards apartment living, Perth is experiencing a change in the way purchasers view property. With the rapid rate of urban sprawl that continues to take place across Perth, residents are realising the opportunities arising from the economic and environmental benefits associated with apartment living. This shift indicates that apartment living is the future of Perth’s ever evolving skyline.
What is Off The Plan?
Off-The-Plan or OTP is a term used when purchasing an apartment before it is built. Essentially you are buying the apartment based on the plans of the apartment before the physical building is completed. OTP has recently gained in popularity amongst owner-occupiers and investors alike as it provides potential purchasers the opportunity to snap up properties before others buyers.
Why buy Off The Plan?
Buying off the plan has many benefits, including:
Stamp Duty Savings
Buying off the plan means you can access a 75% stamp duty rebate, capped at $50,000. This saving applies to pre-construction contracts signed between 23 October 2019 and 23 October 2021. This rebate also applies once construction commences, but the cap is reduced to $25,000.
For more inforamtion on stamp duty, visit here
Time to save
Construction of an apartment development can take a few years, meaning you havetime on yours side. When you sign a contract to secure your property, you only have to put down a deposit of 10%. The remaining balance of money is not due until completion. This allows you time to put towards your home loan, or time to put your property on the market and sell before you apartment is completed and ready to move into.
Energy efficiency and sustainability
Buying a brand new Finbar apartment means you can feel comfortable knowing that your home has been built with a focus on sustainability to help reduce your environmental impact, and lower your power bills.
Depreciation is the method used for calculating loss in value over time. You can claim this loss as a deduction in your annual tax return. Owners of apartments are able to clain depreciation on a portion of the strata common areas, including pools, lifts, gyms and car parks.
Buying off the plan provides you with a brand new apartment, meaning you don't need to factor in renovation or maintenance costs when purchasing like you may have to when buying an established property.
Designing your dream home
Buying off the plan means you can have more say in what your dream apartment looks like. With the option to pick from multiple colour schemes, and in some cases, upgrade certain finishes, you can ensure you get your dream home before construction starts.
What are some things I should consider when buying an Apartment?
An apartment is more than just a location it’s a future home for families or income for investors, therefore it is important to consider the following:
Apartments with facilities vs apartments without facilities?
Apartments with demanded resort-style facilities such as commercial-grade gyms, solar heated pools, residents lounge with state of the art fittings and furniture and other preferred facilities, provide owner-occupiers with great amenities to utilise.
Investors also profit from owning an apartment with resort-style facilities are more likely to generate a constant rental returns from tenants who are devoted to living in the apartments for a longer-term. In addition to the handsome rental returns that apartments with resort-style facilities offer investors they also often provide future capital growth and saleability for investors and owners alike.
How much are strata levies and what services do they cover?
Strata levies are dependent on the location and size of the apartment as well as the facilities available in the apartment complex that require services provided by the strata manager. Therefore, there is no definitive answer only a rough estimate to how much strata levies an apartment incurs.
Apartment developments that include facilities such as gyms, pools, saunas, BBQ area etc. strata levies can seem quite high. However, when considering all the inclusions with owning an apartment with such facilities you soon realise how much value there is in living in an apartment. Strata levies also include the necessary insurances.
For a similar price as a house quite far from the CBD, a choice inner-city apartment with facilities, residents can save on fuel by walking or taking public transportation to work, a gym membership, installing a swimming pool, and other cost associated with home ownership. Don’t forget the environmental and psychological cost you save when you avoid driving in congested freeways.