29 Feb 2024
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“Buy today, with nothing more to pay!”
We all know there will be more to pay.
“Buy one, get one free!”
Is it really free?
Most of us are savvy consumers when it comes to our day-to-day purchases, dubious of catch cries that seem too good to be true. But when it comes to buying property, we may not always see through the incentives offered up by developers enticing you to take a slice of land or commit to an off-the-plan apartment.
In a bid to entice buyers, developers will often ‘sweeten’ the property purchase with special offers. These are known as buyer incentives. These incentives are varied, and special deals range in value depending on market conditions and the stage of development.
Examples of buyer incentives include reduced stamp duty offers, smaller deposits, furniture packages, upgrades on finishes, payment of bills for up to 24 months – even cars and holidays.
Buyer incentives are introduced for a variety of reasons, including meeting pre-sale targets in order to start construction, generating publicity and as an exercise to boost sales generally.
Buyer incentives don’t necessarily mean a development is performing poorly, although that is one reason developers offer up incentives. In the current slow property market with tighter lending standards, we’re seeing a rise in buyer incentives.
Sales are critical to any development. Buyer incentives allow developers to tempt buyers without reducing the sale price, which could affect the value of the development and draw into question the development’s integrity.
Buyer incentives may sound like a win for buyers, but just like those hard sell slogans, they may not be as good as they seem. Here’s what buyers should be aware of:
Mortgage House
At Mortgage House, we’re no strangers to the home buyer’s journey. It’s a long (but rewarding) one. If you’re thinking of applying for a home loan, you can Apply Online today to get started!