Off the Plan Property Benefits
Considering current market conditions, there is no better time to buy a house then right now. With median house prices in many major cities at their lowest against the previous 5 years, savvy investors are taking advantage before prices recover. There are of course additional strategies that purchasers can use to buy a quality home for a sharper price.
One such strategy is to buy off-the-plan, which is to say, before the property is completed. When you buy off the plan, the value of the property is generally set close to current market value. Since property prices trend upwards long-term, by the time of completion capital growth will have increased it’s value beyond purchase price.
A Case Study
As an example, one of our Developments, The Precedent, constructed six townhouses in Nundah. These townhouses first became available for purchase in 2016, when the median property price in the suburb was $673,000. By the time these properties were completed and settled in October, 2018, the median price in Nundah had grown to $710,000.
So a person who purchased in 2016 off the plan saved $36,500 compared to a person who purchased in 2018.
Off the Plan Property Risks
The biggest risk of buying property off the plan is if the opposite happens – if property values drop.
The property market trends upwards, but there are short-term drops. If you buy in the wrong area at the wrong time, it is possible to overpay on an off the plan property.
This is why it’s important to have the proper information before purchasing, or to consult an expert. Property investment is a fantastic method of creating wealth, but it is not without risk. Yet, the same is true of all investments.
As a property developer, we naturally have properties available for purchase off the plan across our sixteen active projects.
In Brisbane, we have properties available in Everton Park, Stafford, and Gordon Park, as well as luxury properties in Hamilton.
In Melbourne, we’re building in Pakenham, Noble Park, and Beaconsfield.
If you’d like to learn more about buying properties off the plan, use the form at the bottom of this page to enquire.