Investors looking to buy off the plan will get the best possible experience from 88 International. Here are a few tips to get the most out of your investment.
Get in early
Getting in early can be hugely beneficial to you. Not only does it provide you with the chance to take your pick from a larger pool of properties on offer, but you might be able to save some money as well. As prices can often rise during development, buying in early will save you this capital. Additionally, your deposit can act as equity for construction capital, meaning that some developers will offer decent monetary incentives for buying off the plan in the early stages of development.
Consider market fluctuations
Whether you’re purchasing off the plan as an investor or owner occupier, it’s important to do the research on your potential purchase. You should be considering rental yields and vacancy rates, as well as similar sales in the past and future developments that might affect the value of your new property. You should also be looking at long term growth to get a better understanding of what the future will hold for your investment.
Consider the long term market expectations when you are investing off the plan.
Don’t underestimate the risks
Like any investment, buying off the plan does have some risks. The worst case scenario is that a project will fail to get off the ground, either due to a lack of demand or the developer going under. In Australia’s competitive construction market this isn’t a common occurrence, and in such a case the buyer will get their money back. Experienced investors will also tell you that sometimes the final product is different to what you expected – generally this can be remedied with a thorough investigation of the plans for your new property.
Understand your contract
New developments can often take a long time to complete. A lot can happen during this time, and your financial situation could change drastically. Before you sign your contract, make sure you understand the commitment you are making. This contract is a legally binding document, and while some might have cooling off period wherein you can pull out of the purchase, once it signed you a liable to buy the property. There are often clauses written into these contracts that will benefit the buyer if the developer fails to meet their obligations. It’s important to know what your rights are, and what the developers are required to do. This way, even in the worst case scenario you’ll be prepared.
You should always research the developer to make sure they have a proven history of seeing projects through to completion. The upside to buying from 88 International is that we only work with trusted and reputable developers and builders. We want to make sure you get the absolute most out of your investment.
Looking to buy off the plan? Get in contact with 88 International or come along to one of our events!