Pros and cons of buying off the plan
Open the real estate section of any newspaper and you are bound to come across glossy advertisements spruiking a shiny new development being built in a prime location in your capital city, usually close to the CBD and established amenities.
With capital cities across Australia suffering from a housing shortage – which subsequently pushes up property prices – the proliferation of new developments is seen as contributing to meeting the housing needs of our growing urban populations.
Buying off the plan means signing a contract to buy an apartment or townhouse before it has been built. While there are benefits to buying an apartment off the plan, there are also some drawbacks.
What makes it an attractive option
One of the primary attractions of off-the-plan apartments for buyers is their location and accompanying lifestyle. “These apartments are often in desirable locations,” he says. cloud hosting info “For owner occupiers, their number one priority is not to make a profit – it’s to enjoy a certain lifestyle and that is the appeal of buying off the plan.”
If you enjoy the thought of living in a brand new home that has had no other inhabitants before you, then buying off the plan may be for you. If you get in early, you have your choice of apartment that will suit you most, rather than choosing from what’s left at completion.
“You buy something at today’s prices in 2014 to settle on something in, say, 2016. The theory is that property price will have gone up in three years,” he says.
A negative with buying off the plan is the potential of an oversupply of new developments, such as what happened in Melbourne’s Docklands, where an oversupply has meant property prices stay flat. Pyrmont in Sydney is another example of an oversupplied area.
If you are considering buying off the plan:
- Ensuring there is at least one car park on title.
- Look for views that can’t be built out.
- High-quality fittings and finishes.
- Quiet location.
- Read the contract carefully.