Until the the late 2000’s, buying off-the-plan was a widely adopted and very popular method of selling real estate throughout Queensland and nationally. Since the Global Financial Crisis, and following the introduction of some new law (and the litigation that promptly ensued) the off-the-plan market landscape has changed a great deal.
Here are our top six pointers when considering any off-the-plan purchase:
The developer – what’s their track record like?
Staged developments – what will the effect be on the value of your unit if subsequent stages don’t proceed?
Schedule of finishes – how clear is this list? Are you getting ‘quality stone bench tops or similar? What is ‘similar’?’
No money down – do you actually have the cash to settle? Don’t bank on a re-sale as the market can turn around in a hurry, leaving you bound to settle.
Resales – if you intend to sell before you settle, do you know how much you need to sell for before you will turn a profit? have you considered tax, transfer duty and agents’ commission on any re-sale?
Tax and entities – have you spoken to your financial advisor about how to best structure your purchase?
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