Why does “off the plan” property sometimes have a bad reputation?
Posted by taylor | Under Buying Investment Properties, Off The Plan Property Friday Aug 20, 2010Why does “off the plan” property sometimes have a bad reputation?
By: Whitehouse Capital Partners
This has been created by developers marketing projects at highly inflated prices to unsuspecting investors and investors not conducting sufficient research before investing. Further, investors then don’t having the financial ability / capacity to complete at settlement and as a result have to forfeit their deposits.
From a personal point of view I have invested in numerous properties off the plan in Sydney, Melbourne and Brisbane, all being positive experiences. I believe the secret here is in knowing what you are doing or relying on the expertise of those that have done this many times before and have the necessary experience to consider possible pitfalls.
If something looks too good to be true, then it probably is. I believe that one should go with your “gut instinct”, which should then be qualified by reliable and transparent due diligence and research, something that Whiterock Capital specializes in.
One of the most import issues in my mind to consider when purchasing off the plan is to ensure that pricing is in line with the market and that you are not paying an inflated price
This has been created by developers marketing projects at highly inflated prices to unsuspecting investors and investors not conducting sufficient research before investing. Further, investors then don’t having the financial ability / capacity to complete at settlement and as a result have to forfeit their deposits.
From a personal point of view I have invested in numerous properties off the plan in Sydney, Melbourne and Brisbane, all being positive experiences. I believe the secret here is in knowing what you are doing or relying on the expertise of those that have done this many times before and have the necessary experience to consider possible pitfalls.
If something looks too good to be true, then it probably is. I believe that one should go with your “gut instinct”, which should then be qualified by reliable and transparent due diligence and research, something that Whiterock Capital specializes in.
One of the most import issues in my mind to consider when purchasing off the plan is to ensure that pricing is in line with the market and that you are not paying an inflated price.
Why does “off the plan” property sometimes have a bad reputation?
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