7 Point Checklist Showing How To Boost Your Gains Using An Off-The-Plan Strategy
Investing in off-the-Plan (OTP) properties is quite a profitable trade. It’s a fantastic way to take full advantage of market growth, but in order to enjoy maximum growth potential it's important to understand and follow some key factors when using this kind of investing strategy.
Off-the-plan comes with its own jargons and if you don’t know what pitfalls you should expect, what traps are there and how to analyse the key indicators to make bigger gains, then you probably shouldn’t put your hands into it. Most people who face failure in this trade are the ones who don’t follow proper guidance. They think dealing with OTP properties is the same as dealing with a conventional property and after a few short months they realise that they have made the biggest mistake of their lives and now they are in the ditch.
So, here, we will talk about what OTP properties are and how to deal with them if you want to make the best capital gains. Let’s start with getting to know what OTP properties are:
What are OTP Properties?
The term ‘Off-the-Plan’ refers to a transaction in which the investor buys the property before it is built and then settles the payments on completion. It is a contract between both the parties and usually investors pay a down payment or a deposit. The interest of investors here is to invest a minimal amount and then let the property price grow.
PAY NO STAMP DUTY
In New South Wales, a contract that is off-the-plan and house and land packages will get a 100% stamp duty concession (if construction has not commenced), as opposed to a contract that is “Under Construction” that will only get 25%. Currently tapping into the NSW Home Builders Bonus can save you thousands of dollars in upfront fees (low money down), meaning you may be in the green from word go! However, the amount you save is determined when the slab is poured. The off-the-plan stamp duty exemption is only available until 1 July 2012 – so if you’re looking at this strategy for property investing then now is the time to take action as you could save yourself thousands of dollars in upfront fees.
There are no shortages of off-the-plan properties marketed online, however the trick is finding the right deal, and for that an investor needs a check list! So, how do you make sure that you will have a profitable trade with the property and you won’t lose anything? The 7 Point Checklist below is a well proven guide designed to direct the investor towards selecting those off-the-plan opportunities which offer the best value…
READ THE FULL ARTICLE HERE
Sam Saggers is CEO of Positive Real Estate and Head of the buyers agency which annually negotiates
$250 million-plus in property.
SEE MORE ARTICLES BY SAM
Whether you are looking to buy your first home, move home, refinance, or invest in property, a mortgage broker can help. Access loans from all the major lenders, get help with paperwork – plus there is no charge for this service. Get help from a local mortgage broker
Top Suburbs :
Get help financing your investment
Do you need help finding the right loan for your investment?
When investing in property, it is important to make sure that you not only have the lowest available rate that you can get, but also have the correct loan features for your needs.
Just fill in a few details below and we'll then arrange for a local expert Aussie Mortgage Broker to contact you and work out what features or types of loans are right for your needs. We'll even help with the paperwork. Plus, our mortgage broking service is at no cost to you.
We value your privacy and treat all your information seriously - you can check out