As the need for quality yet affordable homes continues to increase, the concept of off-plan property buying has been gaining momentum in Melbourne’s real estate arena quite rapidly. Learn what off plan property buying entails. And learn how can you protect yourself from the qualms involved below.
What Is Off Plan Property Buying?
In a layman language, off-plan property buying entails committing to purchasing a property that is yet to be built. In other words, it means signing a contract to buy a house that does not yet exist. Therefore, you only rely on the architectural plans.
You have endless options when you invest in an off plan project as it means you’ll be among the first to be informed about its completion. Hence you get the benefit of choosing a property that has the best view. And these will be close to necessary amenities and other features you find appealing.
You Get The Chance To Personalize Your Home
Unlike purchasing a property when it is ready buying off the plan gifts you with the opportunity to partake in its designing process. For instance, you can ask the developer to swap the position of particular rooms or use fixtures and fittings of your choice.
A Valuable Property At A Reasonable Price
An Off the Plan Property Buying melbourne, gives both homebuyers and investor access to valuable assets at discounted prices. Hence they get to live in a posh environment in the future when the value of the property goes up. It also means high capital gains as they can flip it for a higher value once complete.
Enough Time To Get Your Money Right
Because off plan properties require low initial capital outlay and full payment is made once the project is complete, it gives both home buyers and property owners an opportunity to get their finances right.
In some countries, for instance in Australia, first home buyers usually benefit from the First home owners grant which might involve stamp duty discounts or exemptions. This further makes the property affordable, meaning even more gains in the future.
Off property, buying isn’t always sunshine and rainbow. There are certain risks involved, for instance, the project might be in a location which is unlikely to grow in future. Therefore burn some shoe leather and go check out its location.
Consider the terms and conditions on the developer’s contract. For instance, if you plan to flip the asset what are the restrictions? Can you visit the site during the construction? Will you get back your deposit if the developer doesn’t deliver within the stated time frame? Does the developer’s insurance protect you if he/she goes into liquidation before completion?
Don’t just buy everything the developer tells you, ensure you do your research on him/her. Go the extra mile and look at the success of their previous developments. The realization of the project relies on the developer which is why you should ensure you learn about their portfolio.