When it comes to purchasing a new property, homebuyers are often on the lookout for attractive incentives that can enhance their investment. Builders strive to entice potential buyers with various incentives. The most common incentives offered are capped development levies, assignment discounts, and the right to lease during occupancy. Let’s delve into these incentives and understand their benefits for homebuyers.
Capped Development Levies
Capped development levies are one of the most sought-after incentives offered by builders. Development levies are charges imposed by municipal authorities to fund infrastructure projects in the area. However, these levies can significantly impact the final purchase price of a property. To alleviate this burden, some builders opt to cap the development levies, ensuring that homebuyers will not be subjected to any additional increases beyond a predetermined amount.
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By capping the development levies, builders provide homebuyers with cost certainty and protection against escalating fees. This incentive proves advantageous for buyers, allowing them to budget more effectively and avoid unexpected financial strain. Moreover, capped development levies can result in substantial savings, making the overall investment more attractive.
Assignment Discounts
Assignment refers to the transfer of the purchase agreement from the original buyer to a new one before the property’s completion. This incentive provides flexibility for buyers who may have changed their plans or circumstances since entering into the agreement. It is also attractive to investors who purchase pre-construction homes with the sole purpose of assigning it once the value of the property increases.
Right to Lease
The right to lease is an appealing incentive offered by builders, particularly for investors looking to generate rental income. This provision permits buyers to lease out their property before they take occupancy. It allows them to start earning rental income immediately upon completion, mitigating any holding costs or mortgage payments.
For investors, the right to lease provides a lucrative opportunity to secure tenants in advance and establish a rental stream. Additionally, it grants flexibility by allowing investors to choose whether to reside in the property themselves or continue renting it out for long-term gains.
Unsure of whether you should go the resale or pre-construction route? Give us a call today to speak to a real estate agent that can help you make the right decision.
