The prospect of purchasing an ‘Off the plan’ real estate property is an interesting one and refers to purchase of property that has not yet been completed and may be under construction or construction may have not even begun yet. Most of our clients at Compare Conveyancing Sydney who are inclined towards purchasing such property are well aware of the potential high cost of the property upon completion or the prime value of the real estate and hence want to invest in the same.
Compare Conveyancing Sydney believes that all our customers should understand the pros and cons of purchasing ‘Off the plan’ property before they opt-in or opt-out of this proposition.
Pros of purchasing ‘Off the Plan’ property
Brand new properties are generally endorsed with exemptions and grants from the government end which would give you a financial edge.
The increase in value over time generally outweighs a carefully evaluated risk of purchasing ‘Off the Plan' property. The majority of our clients at Compare Conveyancing Sydney have made big gains by investing in ‘Off the Plan’ property.
You can secure the property by paying the deposit amount itself against immediately securing a loan for the entire property value.
The remaining amount is payable once you take possession of the property thus giving you capital liquidity of at least 90% of the property value.
You can make a strategic investment by buying ‘Off the Plan' property by investing in a that could soon experience a hike in market value.
You also have a fair amount of leverage to modify the structural and interior details of ‘Off the plan’ property versus spending an extravagant sum of money in remodeling a purchased property. Compare Conveyancing Sydney has the right set of valuers and surveyors to help you in the same regard.
Cons of purchasing ‘Off the Plan’ property
The end product may not meet your expectation and may be bigger/smaller or designed in a different fashion than you would have anticipated. At Compare Conveyancing Sydney, we ensure that we put the required parameters into your contract so that you can claim damages if required.
The builder may not stick to the timelines and this may leave your predisposed to a financial setback as your plans to move in would be disturbed. In such cases, the financial institutions that are offering you the loan would start charging you interest on loan even though you have not yet moved into the new property. Such situations require able solicitors at your end to legally protect you and fight for you (if required) under such situations.
You change your mind once you see the finished real estate property and may want to invest elsewhere. In such scenarios, Compare Conveyancing Sydney supports you to ensure that you pay the minimum amount of penalties and easily walk out of the deal. However, we do not recommend such behavior as it reflects badly on your buying decisions and lessens your chances of securing another property both from a vendor and the bank perspective.
‘Off the Plan’ property is a great opportunity for the early bird to gain access to a high potential piece of land or buildings early on in the game. At Compare Conveyancing Sydney, we have many years of experience in the ‘Off the Plan' property and are well equipped to guide you on this journey.