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The trick to buying off the plan

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Your Investment Property | 29 Jan 2013, 12:00 AM Agree 0
You have just found your dream investment property. The only problem: it doesn’t exist yet. We unravel the due diligence required when buying off the plan
  • Jeannette | 29 Jan 2013, 09:32 PM Agree 0
    In regards to the deposit, I had a strange experience. In the contract, it said it would be held in shared account, with all the earned interest going to the developer. However because the account was half in my name, the tax office saw this as earned interest to me, despite the fact that I did not receive it. Meaning I was taxed on this 'income', saving the developer having to pay tax on half of the interest.
    • Johnson | 16 Nov 2016, 07:06 PM Agree 0
      Similiar issue happened to me. However what I was told by my agent that the interest would be an addition to my deposit. For example, 48.5K interest from deposit being in a trust fund would eventually help pay off the mortgage when settlement comes. What are others views on this?
  • Frank | 29 Jan 2013, 11:28 PM Agree 0
    wow - Jeanette - totally ripped off - I'd not heard that one before - but I'd add that to my long list of reasons why not to buy off the plan - meanwhile a friend has committed to an expensive OTP property that won't be built for another year or two - we'll wait and see how that pans out - which stage of the property cycle it'll be when (if developer even comes good) it's time to pay in full.
  • Steve | 05 Jul 2013, 12:17 PM Agree 0
    I actually have purchased 2 properties off the Plan and have been very happy with my purchase on both occasions. The first property i purchased had a bank valuation 40K higher then purchase price and the second property had a bank valuation of purchase price. The teo properties i purchaed were even better than anticipated, My advice is "dont believe all the negative people that knock buying off the Plan". I find buying established properties a nightmare from an investment point of view.
    • | 01 Nov 2015, 10:08 AM Agree 0
      Must be great working at TEO properties ;-)
  • ekman | 31 Jul 2013, 03:24 PM Agree 0
    any thoughts about Brighton Le Sands suburb and I bed OTP property
  • James | 12 Aug 2013, 09:04 PM Agree 0
    I like Brighton Le Sands...reminds me of the 50s for some it. I wonder what people think of Lane Cove North for an OTP purchase.
  • Kam | 11 Nov 2013, 03:57 PM Agree 0
    Hi, I am recently purchased OTP in Lane cove, near the village. I am a first home buyer and a bit worried about the bank valuation as the loan amount would depend on it.
  • Tj makkar | 11 Mar 2014, 06:32 PM Agree 0
    Hi guys, I m bit confused bout OTP property in north mead. Wat u think bout that . This is my first home pls give me some valuable info
  • usagi | 19 May 2014, 12:04 PM Agree 0
    Do not buy from the developer Hallmark Construction. They signed a contract with us for our off-the-plan at 78 Marlborough Road and then now rescind our contract to resell it at a higher price with more smaller units!
  • jaiprakah patel | 22 Jun 2014, 06:23 AM Agree 0
    i had paid adeposit of38k to buy of plan through gallard home in capital que .the price was reduced from365k to 336k because of the rental grentee other insitive in applying for mortage through woolwich bulding society recomndad by gallard who said the only peple lending oney on this block but the valuation came to 300k ihave lost my deposit can any one help .the mortgage was aproved but at 30k only i had only 14 daysto get 30k so gallard sold the flat 332k inthe foling week
    • | 03 Oct 2014, 07:13 AM Agree 0

      I bought an OTP property which should be completed next year around September. What are the rules around Capital Gains? For example if I were to sell it upon completion would I pay CG? I couldn't live in it because it wasn't built? Can I live in it for 6mths then sell it?

      Thank you,
  • Unhappy | 05 Dec 2014, 10:16 AM Agree 0
    I would never again purchase off the plan. The developer, Golden Age, in Melbourne failed to construct a wall between our apartment and the bulding next door because "the builder and the developer were not speaking at the time" so the builder "did what he thought he should". We have no come back because the contact says they can make changes and the purchaser has no right to disput it. BEWARE!
    • Sydney girl | 31 Oct 2017, 04:45 PM Agree 0
      What do you mean no wall?? I am considering a project by them now in Sydney and this really concerned me.
  • Cheated | 05 Dec 2014, 01:24 PM Agree 0
    Hi unhappy. I don't know if it would help but have a look into the case of Flight v Booth.
    I am in a bind myself trying to get out of a deal and get deposit back because the developer used marketing material with the architects floor plan. This measures the apartment from outside walls while valuations and what you own are measured from within the inside walls leaving a difference of 13%. Only in Victoria is this practice acceptable and is totally unethical.
    • Jasmine | 14 Jun 2017, 10:11 PM Agree 0
      I also thought I was buying a larger apartment but advertised plan is measured by external boundaries. Unfortunately due to clauses and fine print, I don't have a leg to stand on. Can I ask which developer this is?
  • | 27 Jan 2015, 04:49 AM Agree 0
    Can anyone comment on an OTP Sales of the proposed Harmony Apartments in Cockburn Central, WA6164? This project is being marketed by PRD Nationwide and to be developed by Harvest Properties WA.

  • | 12 Mar 2015, 09:28 AM Agree 0
    We have an issue of purchasing a vacant land by off-the-plan sales contracts.
    The land lot hasn’t been settled yet. But we signed the contracts August 2014 and paid 10% deposit at the same time. On their original master plan, the opposite of our lot are 6 individual lots. Their sales person told us verbally that these 6 lots are going to be display homes. In the contract, they also have drawings of 6 individual lots: plan of surface level works/plan of subdivision/subdivision masterplan (with council stamp)/developer’s design guidelines.
    The issue came in a few days ago, when I found out buy myself, these 6 lots cross the road are going to be a child care centre. I wasn’t notified in anyway. When I called to confirm, a new sales person told me this has been decided a month after I sign the contract. We cannot accept to live next to a child care centre as my parents have serious insomnia. So we want to terminate the contract and get our deposit back. Is there a way?
  • Simon | 14 Mar 2015, 07:05 PM Agree 0
    Has anyone purchased off the plan from the new Brisbane Skytower?
  • Bryce | 17 Mar 2015, 03:19 PM Agree 0
    Try to stay away from Off the plan purchase. Some were lucky that the areas has gone up when the building is completed. Others can not get the finance at the purchased price and have to make up the balance. If you want to buy a property for live in or invest, look for an existing house/apartment instead.
  • Kel | 07 May 2015, 11:27 PM Agree 0
    Can anyone comment on whether pre-settlement trigger notices, such as the notice informing that the building is ready for bank valuation, is a standard practice for all off the plan developers? i.e. while it is not under contractual obligation, it is however an industry standard expected of developers for these off the plan properties?

    We did not receive this notice and by the time the notice to settlement came we had too little time to get a bank valuation done quickly in time to settle on time. The bank valuation which we could have done months before did not take place because we were not informed about the readiness of the building.
  • Raj | 10 May 2015, 07:11 PM Agree 0
    Can anyone kindly advice me on OTP I am going to buy at Werrington NSW 2747...I already put a holding deposit of $2000.00.
    • des | 10 Jan 2016, 02:12 PM Agree 0
      not good...if units buy at blacktown and if houses go northwest
  • Raj | 10 May 2015, 07:14 PM Agree 0
    THe OTP is 3 bedroom house for $572000.00.The builder is Zac homes.I have just put the holding deposit.Nothing is done after that
  • Raj | 10 May 2015, 07:16 PM Agree 0
    Hi there,
    I will be the first home buyer and thinking of going OTP at werrington nsw 2747.
    I don't have much ideas.Can some one suggest me about the area and plan.
  • sami | 21 Aug 2015, 07:02 AM Agree 0
    Is it worth buying of plan in Melbourne city,a two bed,1 car space,1 bath for around 600000.00
    • Troy D | 01 Nov 2017, 02:52 PM Agree 0
      Well a quick look at shows that you can buy a near new 2 bed 2 bath 1 carspace apartment in melbourne city for $520,000 so no its not worth that much in my opinion.
  • aguswijaya | 28 Aug 2015, 03:42 PM Agree 0
    hi... my daughter studies at melbourne univ. she suggest me to take OTP 2 bed room apart at The Carlson. can I have any opinion for this project coz I am a stranger in town. Thank you. aguswijaya
  • Steve | 29 Aug 2015, 08:16 PM Agree 0
    Dont touch it.
  • Cel | 20 Sep 2015, 07:32 PM Agree 0
    Hi All,

    We're looking at buying OTP on the Gold Coast with Onyx Property, does anyone have experience of this developer. Seems less of a risk as build is already underway and due for completion in Dec/Jan

  • paul | 08 Jan 2016, 07:57 PM Agree 0
    When looking observe the mix of people who are in the dislay centre ask a lot of question Especially the construction finishes
  • Troubled owner | 10 Oct 2016, 09:26 PM Agree 0
    Does the right for builder to "make any change" mean that they can reassign the agreed carspace number?
  • Ronnie | 12 Oct 2016, 03:57 PM Agree 0
    that's not due diligence that's just due dills why not put up a due diligence that ordinary Bill and Mary can understand - there's traps that you and I know and they should know - look forward to seeing your effort
  • Ronnie | 12 Oct 2016, 04:00 PM Agree 0
    OK I'm the dill found it on the next page if you'll forget I'll forget good one Ronnie
  • Lee | 30 Oct 2016, 09:05 PM Agree 0
    Hi everyone - can someone please help. I bought a one bedroom OTP apartment at 531-535 Burwood Rd Belmore NSW at end of 2015 as a first home buyer. I had always thought Burwood was peaceful and quiet but I am totally wrong; the truth is; I've just realised that Burwood Rd (close to Canterbury Rd) is quite busy with trucks, buses and cars going by constantly and therefore quite noisy. Personally; I do not like noise; I find it hard to sleep or relax if there's noise around me. It's only about 2 months from settlement and I am getting cold feet. They still have 4 x 1 bedders in the back building which are mostly likely to be quieter but these have not been completed yet. Do you think I have a chance of asking the agent/vendor to exchange for 1 of these? What are my chances? Thanks for reading.
    • Mel | 03 Nov 2017, 05:18 PM Agree 0
      You cannot do the exchange if you have did the settlement. The only way you can do just selling out and buy the other unit. Please do not hesitate to contact me if you have any question.
    • Mel | 03 Nov 2017, 05:35 PM Agree 0
      You cannot do any exchange after did the settlement. Please do not hesitate to contact me if you have any question.
  • Dave Cooper | 02 Nov 2016, 10:59 PM Agree 0
    Example - "I think this is great advice and found it useful, however like anything there are still risks to consider. People should always get proper independent legal advice from a specialist property lawyer before signing anything"
  • Dave Cooper | 02 Nov 2016, 10:59 PM Agree 0
    Example - "I think this is great advice and found it useful, however like anything there are still risks to consider. People should always get proper independent legal advice from a specialist property lawyer before signing anything"
  • James23 | 15 Nov 2016, 06:29 PM Agree 0
    What is the average discount for off the plan purchase of townhouses in Melbourne?
  • Working man | 09 Sep 2017, 09:07 AM Agree 0
    Hi all
    Purchased a house of a very large developer
    At the sales office they said refer to the contracts on finishes,thats all good and well./ the sales people say check the contract "this has disclaimers saying developer can change things and if you ask about construction materials they dont know ,But do know that if you are too awkward asking question you know you will miss out and then there is a foreign investor standing behind you who dosn't care.
    But in reality when its built ,cheap finishes like styrene rendered panels for walls that off the huge glossy brochure lead you to beleive its rendered concrete or brick, cheap $30 internal doors , mdf scirting cheap single pailing fences.
    Dont beleive the speel.
  • Working man | 09 Sep 2017, 11:07 AM Agree 0
    Ask every question about what the walls are made of and doors /scirting.and read reveiws on the builder used "dont rely on the developers comments"they are only interested in the profit.also chech the reveiw sires and how many 5 star reveiws for the builder who &when they post the reveiws can be mates of the builder
  • 4roomsproperty | 09 Sep 2017, 02:28 PM Agree 0
    Buying real estate ‘off the plan’ means committing to buying a property that hasn’t yet been built. For both potential home owners and property investors, buying off the plan can be more affordable and flexible than buying an existing property but also comes with other considerations.
  • working man | 09 Sep 2017, 04:19 PM Agree 0
    hi purchased a new house off the plan from a very big overseas developer . the best part was the big big brochure.
    the cheap corner cutting was abbysmal never again buildings in the estate made of cheap wood and syrene made to look like render/ fake modwood cheap plastic plumbing etc etc BEWARE ask alot of quesstions before handing over your cash but they dont care because a foreign investor is behind you with a cheque book
  • Stephen | 31 Jan 2018, 06:55 AM Agree 0
    What are my legal rights if my property developer claims bankruptcy? He's been to court and now jail, but my lawyer says he has no assets to liquidate. Apparently I'm not getting a penny back? Meanwhile he's driving a Mercedes his 'father-in-law' owns and his wife is funding his retirement. Sound dodgy to anyone else, or is it just me?
  • David101 | 21 Oct 2018, 11:19 AM Agree 0
    I just put a deposit down on an apartment in the evermore at Southbank Melbourne which is on the fringe of South Melbourne. 720k for 2 bed 2 bath with large courtyard as it’s podium level. Feeling very anxious about settlement value next year even though I had a bank valuation, legal financial advisor and conveyancer. 1st time buyer so new to this. What am I in for finance wise?????
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