Video: 5 Risks Of Buying Off The Plan and How To Avoid Them
Darryl Simms talks about 5 common risks to buyers of Off The Plan and how to minimise those risks
Any Questions? Ask Darryl Here
5 Risks of buying off the plan and how to avoid them
It is critical to undertake careful research and due diligence when buying a new property, regardless of whether you are buying it as an investment property or you intend to live in it yourself.
Any Questions? Ask Darryl Here
Video Transcript below:
Regardless of whether you are buying a new property to live in or as an investment property, it is critical to undertake careful research and due diligence during your selection process.
Today I will share 5 of the common risks associated with buying off the plan property, plus offer you a free download at the end of this video to help you on your property journey.
Project delays are one of the biggest risks, or in a worst-case scenario, the project doesn’t complete at all, or never gets out of the ground in the first place.
It is critical to choose your projects carefully and run background checks on the developers and associated parties.
Another simple way to avoid extensive delays is to stay away from the large high rise apartment projects, as they are generally the ones that go way over time.
When choosing an off the plan property it can be difficult to envisage the end product and to ascertain whether it will suit your needs or your tenants needs.
Not being able to walk through a finished property can in some cases lead to you feeling that you didn’t get what you thought you paid for.
Oversupply of similar properties being built in the same area, either now or in the near future is another of the biggest risks to your investment.
This is where engaging a property specialist with local knowledge can be of immense value to you, in making sure you are buying in the right area.
Buying a high rise apartment believing it will have a stunning view can sometimes result in disappointment after construction,
or in a worst case scenario your view may be totally obscured by another project.
Thorough checks with council planning can mitigate this risk, or you can shift your focus to the best floor plans rather than paying extra for a potential view.
Low valuations at completion can cause unnecessary and usually totally avoidable pain.
It is quite possible that your purchase will be worth more after it is constructed, but in some cases the bank may value your property for less than you paid for it.
Low valuations are a common outcome for those buying off the plan in the heart of the CBD and in the outer suburbs.
Staying away from those areas is a good starting point in avoiding valuation shortfalls at completion.
One of the most effective ways to minimise risks and maximise your chances of buying a quality property, is to engage a property specialist.
In addition to helping you locate a property that offers the greatest potential for capital growth, a professional property specialist will also save you time and eliminate an enormous amount of stress.
That’s it for this video
Thanks for watching and make sure you download our free checklist of
7 reasons for buying off the plan property via the link below