On-the-job buying is an upward trend, not only among homeowners wanting to downsize, but also among investors looking for more flexibility. But the purchase of a home that is not yet tangible is it really worth it?
The on-the-plane purchase involves taking out a contract for the purchase of an apartment that has not yet been built. Unlike traditional home sales, buyers have no chance of inspecting the building first and must base their decision on plans provided by a developer.
"The biggest benefit may be that you will usually pay less if you buy it that way.The reason is that you will have agreed to a purchase price with the developer before the end of the works, which means you could pay a lot less for the unit than what it will be worth in the end, because of the rise in real estate prices ", said Jessica Galley, industry observer, in an article by Starts At 60.
The lower deposit amount is another benefit. Some developers only offer 5% deposits, which gives buyers more time to control their finances.
See also: Checklist in 10 points for purchases on plan
The stamp duty is also reduced, since taxes will be paid only for the value of the land instead of the finished good.
However, one of the biggest drawbacks of unplanned purchases is the potential decline in the value of the property after its completion.
"For example, if the price of homes in Australia collapses, you could end up paying a lot more than what the property is worth at the end of its completion," Galley said.
Another disadvantage is the quality of construction. Investors must do their part in the developer research before signing the contract. For example, if the developer fails to complete the construction, buyers must ensure that they have the right to recover their deposits by verifying in their contracts the sunset clause. This indicates the exact dates on which the construction must end, otherwise the contract would be null and void.
"However, the situation may be different if the developer goes bankrupt before the end of the apartments.In this case, whether or not you receive your refunded deposit depends entirely on the terms of your contract," said Galley. ]
Top suburbs:
the basin
,
Kawana
,
sunshine
,
crossing of ropes
,
Belmont
Get help for your real estate investment
Do you need help in finding the right loan for your investment?
When you invest in real estate, it's important to make sure that you do not only have the lowest available rate that you can get, but you also have the features of ready adapted to your needs. What features or types of loans are suited to your needs? We will even help with the paperwork. In addition, an appointment is free.
We value your privacy and treat all your information seriously – you can check
our privacy policy here
