5 Things to Consider When Buying Property Off the Plan
The property has been, and remains one of the most accessible options for would-be investors and seasoned professionals alike. With a wide diversity of investment options and a range of services to assist you, an investment property could be a steady source of extra income.
Property investment still comes with a range of considerations though, including the best strategy to maximise your profits. Buying off the plan – or purchasing property that is still in development – is one of those strategies and it has a range of advantages. You can usually secure off the plan investments at a lower price. Coupled with tax advantages and market fluctuations, this strategy could accelerate your investment plan. Off the plan purchases also have their risks and pitfalls though. To maximise your knowledge and minimise the risks, here are 5 things to consider when buying off the plan.
- Examine the Market Conditions
While the land you purchase will have some property, the overall success of your property – once it’s built – will depend on the market conditions. Just like property fluctuations can benefit you, the can also backfire.
When you’re considering buying off the plan, don’t just look at the current market trends – examine past fluctuations and talk to an expert about predictions for the future. While you can’t always predict what’s coming in the property market, you can seek sound advice that will shape your investment.
- Research the Developers
The team who are building your property are a big part of its success, so knowing that they’re reliable is important. Among other things, find out how long they have been in the industry, talk to previous clients and examine their previous work. If they have a history of incomplete projects, this is an off the plan red flag.
- View Plans and Visit the Location
A lot of the time with off the plan builds, floor plans, display homes and models will be all you have to go off. Be sure to examine these carefully to inspect the quality of work and design.
Also visit the physical location though, as seeing where your property will be based will provide a great insight into its potential. If there is a glut of residential development in the area, or high-rise construction underway, this could compromise the potential of your investment.
- Put Everything in the Contract
While it’s important to ask questions and make requests, it’s even more important to have these expectations put into your contract. This can provide greater security around a developer’s finances, as well as clear pathways should complications arise.
- Seek Legal Advice for the Contract
A thorough review of your contract with a legal professional can further protect your rights in an off the plan agreement. Talk to your expert property lawyer about your right to withdraw, potential penalties, your right to make changes to fixtures and other important point. A specialist property lawyer can identify the important aspects that need reviewing before your sign on the dotted line.
If you’re considering an off the plan purchase around Brisbane, be sure to follow these important steps. For all the legal and contract aspects, talk to our professionals at Bartels Lawyers. Contact us for a free initial consultation and expert property advice. Call (07) 3341 2222 today.