We are the first to admit, there are horror stories with off-the-plan. Here is our rationale and pragmatic view of this
1. This reputation has lowered demand
2. The former popularity means that their is a deluge of off-the-plan on the market
At this office, the most popular investment is a dual income on single property, the second is off-the-plan. So, how to the astute investors find the ‘gems’ in off the plan? Here are practical tips
✔️ Heavily investigate what other developments they have completed
✔️ Find online images of previous finish and overall quality.
✔️ Before committing, view in real life, building practices and construction
✔️ Get a lawyer to review the contract prior to placing the deposit. (check sunset clauses – ensure you get fairly compensated if they run late)
✔️ Enquire everywhere in the suburb. Get lots of brochures. Do not get pressured by sales people
✔️ Research first purchase prices vs recent sale prices.
✔️ Research suburb profiles and build trend data of future sale prices
If you find a good developer, in a good suburb at a suitable price, your ability to de-risk becomes higher and higher.
Other things to look for as a bonus
✏️ Rent guarantee – as long as possible
✏️ Low deposit – keep your cash as long as possible
✏️ Early opt-in allowing you to choose floor / unit position
At some base level, everything is supply and demand. That counts for your initial purchase – and the subsequent rental or sale.