Investing in real estate is a significant decision, and choosing the right contract can make a substantial difference in terms of affordability and financial planning. One attractive option for prospective buyers is the 10/90 contract, particularly for townhome purchases. This blog will explore the benefits of buying a townhome on a 10/90 contract.

Understanding the 10/90 Contract

A 10/90 contract also known as a one-part contract is where the buyer pays 10% of the property price upfront as a deposit, with the remaining 90% due upon completion of the project. This type of contract is especially popular in the off-the-plan property market, providing several advantages to buyers.

Benefits of the 10/90 Contract

1.Lower Initial Financial Outlay

The primary advantage of a 10/90 contract is the reduced initial financial commitment. With only 10% required upfront, buyers can secure a property without needing to have the entire purchase price available. This can be particularly beneficial for first-time homebuyers or investors who may not have immediate access to large sums of money.

2.Time to Save and Plan

Since the bulk of the payment (90%) is due upon completion, buyers have time to save and arrange financing. This period can also be used to secure a better mortgage rate or improve one’s financial standing, making the overall purchase more manageable.

3.Potential for Property Value Appreciation

Buying a townhome on a 10/90 contract often involves purchasing off-the-plan. This means that the property may increase in value by the time it is completed. For example, Evoke Townhomes in South Morang is located in a rapidly growing suburb of Melbourne, known for its family-friendly environment and increasing property values. Buyers who enter into a 10/90 contract may benefit from capital growth, potentially seeing a higher return on investment when the project is complete.

4.Fixed Price Advantage

The 10/90 contract usually locks in the purchase price at the time of the initial agreement. This can protect buyers from market fluctuations and potential price increases. For those buying in areas like South Morang, which are experiencing growth and demand, this can be a significant financial advantage.

Evoke Townhomes: A Prime Example of the 10/90 Contract Benefits

Evoke Townhomes in South Morang exemplify the benefits of buying on a 10/90 contract. Located in a vibrant community with excellent amenities, schools, and transport links, these townhomes are an attractive option for families and investors alike. The development offers contemporary designs, functional and spacious floorplans, and a community-oriented environment, all of which add to the property’s appeal and potential for value appreciation.

Making Homeownership Accessible and Financially Viable

Buying a townhome on a 10/90 contract, such as those at Evoke Townhomes in South Morang, offers numerous benefits. A lower initial financial outlay and the opportunity for property value appreciation, combined with the advantages of a fixed purchase price, can make the dream of owning a new home more accessible and financially viable.

For those considering entering the property market or looking to invest in a growing area, the 10/90 contract provides a flexible and advantageous pathway to homeownership.

Prospective buyers should conduct thorough research and seek professional advice to ensure the best possible decision for their circumstances.