Buying off the plan
At Bolt Property Group, we are pleased to be associated with success stories, where our customers/purchasers benefit from making astute investment decisions. Unfortunately, we also hear of many cases where purchasers have received poor advice or no advice. With our expertise, we can help your next off the plan experience exceed every expectation and provide a suitable foundation for future off the plan property purchases.
Buying off the plan is a literal term for purchasing property that has not yet been built. In other words, making a decision to buy an apartment or house based on the documentation available prior to construction. This includes all financial and legal documentation which explains the contractual commitments, architectural plans and exterior/interior visual computer generated images.
For well-informed purchasers, buying property off the plan has numerous financial and emotional benefits, but for the uninformed purchaser there can be many hazards that can turn the expectation of a great investment opportunity into a financial and emotional headache. So what are the benefits and risks you need to know before buying?
- Alternative deposits – which means you can use a lower cash deposit, a bank guarantee or a deposit bond (project dependent).
- Maximize tax advantages.
- Stamp duty concessions in some States.
- Customized design possibilities.
- Longer settlement period, allowing for potential capital growth.
- If settlement is longer than 12 months, then often a valuation at the current market price may allow 100 percent finance.
- Interest on deposit is often received by purchasers when cash deposits are made.
- Time to save more cash during settlement period.
- Opportunity to move into a brand new apartment.
- Deposit is held in trust.
- The project may not proceed.
- The finished product may differ to what you anticipated.
- Expected capital growth doesn't eventuate or value may be less than purchase price.
- Developer may go into liquidation which stalls the project and ties up your deposit.
- Project may be delayed
Is that all to know? Definitely not. There are a lot more we can share with you not only about the projects, but also financial and legal aspects. With years of experience, we can well assist you with your purchaser in off the plan projects and give you the right advice with what you should know.