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    Default Buying property off the plan

    Hello, I am keen to hear from people who have bought an investment property off the plan. What was your experience, good and bad? Any helpful hints or pitfalls? we are thinking of purchasing a unit in Brisbane off the plan. We live in NSW.
    We spoke to our mortgage broker who says we can borrow the finance based on our equity but already feeling nervous about taking this leap into property investment.

    Thanks

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    There are good and bad.

    Is it a house and land or an apartment?

    Are titles issued yet? If not, when are titles expected, and do you have a sunset clause for the contract to expire if titles are not granted by a certain time?

    What kind of area is it in?

    Buying off the plan can be a good bargain. Developers are keen to get pre-sales in order to meet their finance conditions and so they sell at lower prices. Sometimes.

    But other times, especially in a falling market buying off the plan can mean that you pay todays prices for a property that wont be worth as much when you finally settle.

    So make sure that you do your research carefully ... at what you think the property is REALLY worth. What can you buy that level of established property for now? are prices rising in your area over hte last year? are they stable?

    Its a hard call

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    Default Buying property off the plan

    I wouldn't buy a new apartment in nsw after new strata laws came in.

    http://m.smh.com.au/nsw/new-laws-bad...27-10mxpq.html

    We are looking at investing in Adelaide. Sydney is too expensive anyway. Around the corner from us, 3 bedroom apartments selling for $1 million

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    Hi ladies,Katies mum thanks, these are all good questions which I don't have the answers for yet. I will certainly be researching hard over this.
    It's an apartment under $400k in the inner north part of Brisbane.
    For this price in Sydney (where we live) we would have to buy in the outskirts of sydney and our mortgage broker strongly advised against the sydney market right now.

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    Quote Originally Posted by Lillac View Post
    Hi ladies,Katies mum thanks, these are all good questions which I don't have the answers for yet. I will certainly be researching hard over this.
    It's an apartment under $400k in the inner north part of Brisbane.
    For this price in Sydney (where we live) we would have to buy in the outskirts of sydney and our mortgage broker strongly advised against the sydney market right now.
    I don't know if you could buy apartments anywhere in Sydney off the plan for under $400k

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    BigRev you are probably right -- I haven't looked at what's available in Sydney in terms of off the plan. I was thinking more of an established apartment/studio in outer sydney

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    Quote Originally Posted by Lillac View Post
    BigRev you are probably right -- I haven't looked at what's available in Sydney in terms of off the plan. I was thinking more of an established apartment/studio in outer sydney
    Oh, sorry. Sydney is so crazy. That's why we are looking at Adelaide. So cheap.

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    ok

    when buying an apartment - have a good look all around

    - what willt he strata fees be?
    - what will the resale value be when you are ready to sell?
    - are there lots of other new developments happening in the next 10 - 15 years?

    one of the major problems with buying apartments is when you are selling if you are competing against new developments. The resale value tends to then be limited to what the developers are selling new ones for (or less as your unit is then 10 years old)

    - are they setting up a major sinking fund in order to maintain the public areas?
    once the 'newness' wears off, unless its kept up, the place tends to run down quickly and the overall look of the place can quickly bring down the value of your property if its not nice. With an established apartment you can see the track record.

    - is the builder a reputable builder? can you see other developments they have done in terms of the quality of the finish? There can be a BIG difference in how a property is finished, even using the same basic installations.


    Developers borrow money from the bank to finance a developemnt, and the bank usually requires a good solid amount of presales before they will come through with more money at various stages ... so developers are always keen to sell off the plan ... so you can get a good discount for some properties.

    Others are well overpriced and when the apartments actually hit the market, they are reduced to the 'market conditions' ... so its always a judgement call.

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    Thank you so much Katies Mum you've given me lots of things to think about and I've written down your points. Do you think it's a wiser idea to just buy an established apartment ?

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    its hard to say. definitely do a lot of research about how much to pay for apartments in that area before you decide if you are getting more for your money.

    buying off the plan means that you dont have to pay for some time ... but it also means your place wont be available for quite a while so does that suit your circumstances?

    can you give me a link to the development?

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