In this week’s episode of The Property Investing Journey bonus series, Mike is joined once again by Buyer’s Advocate, Lisa Parker, to talk through the risks and rewards of buying property off the plan.
Having been a previous guest on the series, most recently joining Mike on Episode 8 talking about how to spot a spruiker, Lisa’s back to discuss the various categories of buying off the plan and what to look out for to avoid potential pitfalls. There are many examples in the media of purchasers being caught out when the market moves before settlement, or they don’t get exactly what they were expecting once the transaction is complete.
Lisa shares clear examples of factors investors need to be aware of, and where the process can come unstuck. She shares her experiences of helping clients avoid costly mistakes by guiding them in the right direction and explains the impact valuation fluctuations can have on the end result.
Whether it’s the risk of time to complete or the impact that zoning can have for the supply equation, Lisa and Mike have got it covered. With the proportion of new dwellings in the apartment market, and the appeal of modern developments, this is a section of the industry where knowledge is priceless.
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Mike is joined once again by Buyer’s Advocate, Lisa Parker, to talk through the risks and rewards of buying property off the plan. Lisa shares clear examples of factors investors need to be aware of, and where the process can come unstuck. She shares her experiences of helping clients avoid costly mistakes by guiding them in the right direction and explains the impact valuation fluctuations can have on the end result.
What we cover in this episode
- Categories of properties available off the plan and associated risk
- Key things to be aware of when buying off the plan
- When is it a good idea to buy off the plan?
- How zoning can impact the market
- What happens when the market moves before settlement
- Where there may be a conflict of interest
- Changes to the final design
- Sunset clauses
- Lisa’s top three tips for purchasing off the plan
“We should probably identify the different types of properties that you can purchase off the plan because they all come with different risks and the degree of risk is different for each category.“ Lisa 00:58
“It’s always important to understand that when you’re a consumer and you’re not paying for a service, that the person is a sales consultant, who represents the product that they’re selling, and therefore there can be a conflict of interest“ 10:34
“I feel really fortunate to be in the situation that I’m in…to be able to sit down (with my clients) and honestly and transparently point out the pros and cons of every decision and empower them to be able to make a really informed decision that’s right for them.“ Lisa 12:50
“We have seen instances where a property has completed and there’s a mighty big concrete column that runs directly through a portion of the apartment that was never anticipated but due to some structural changes,,,it had to be added through the construction and they are well within their rights to do that.“ Lisa 14:34
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