Buying Off The Plan VS. Established Property

I’m always happy to pass on great info...and this is great info! I’ve included a few snippets below lifted from the full article. 

When buying an established property what you see is what you get. It’s a tangible asset. It is being sold in an open market and you have had the opportunity of comparing it against other similar properties.

Purchasing ‘off the plan’ is quite another matter, as the property has not actually been built yet, and may not be completed for one to two years or more.

Selling property, usually an apartment, ‘off the plan’ is a way for developers to fund construction of their developments through presales. Many offer what seem to be enticing incentives to property investors such as generous rental guarantees that ensure their investment generates positive cash flow for a set term following settlement.

The Possible Advantages of Buying Off The Plan

On the surface, buying off the plan has some possible advantages:

• You simply pay a small deposit to secure your property (with the balance being payable upon completion) and hopefully the property increases in value in the time between paying the deposit and settlement.
• In some States, such as Victoria, you pay stamp duty only on the land component of the transaction.

Do you need more detail on this subject? Head on over to the full article here for more ideas and perspective. Afterwards, why not drop me an email to share your thoughts alexsapounas@cmlaw.com.au; or call me on (0295) 686 266.

Thanks,

Alex