Buying off the plan can be more affordable and flexible for investors but doesn’t come without risk.
Here are some considerations:
•
The final product is not known until completion, so research the builder thoroughly
• In some instances, developments do not go ahead so ensure that your deposit is guaranteed
• Look for any sunset clause in the contract, to see how long the developer has to finish the project
• Banks/lenders won’t actually loan any money until the property has been built and they have performed a valuation
• Falls in the market or changes in interest rates during the construction
period, can impact your ability to service your loan
• You need to engage a conveyance/solicitor to check your contract for unexpected costs/conditions.
Here are some more important questions to ask
: • What happens if the project finishes later or earlier than scheduled?
• Who takes responsibility for defects?
• Can you resell before completion?
• What type/brand of fixtures are being used?
• Does the developer offer a rental guarantee?
• Look at comparable properties in the area, to see if you can afford the property when the rent returns to
market value
• Contact the local council to check zoning and future developments to ascertain the rates
RealRenta have access to some very exciting,
high quality developments via our property strategist partners.
To see our latest offering contact Marlene Liontis 61 417 693 547 or propertysales@realrenta.com
Marlene Liontis
Saturday, 19 January 2019
