Any suggestion on buying terrace house off the plan?

[Hinurab]

Hi forum members,

I'm looking for some suggestion/advice.

I'm thinking of buying a terrace house/townhouse off the plan, is this a bad idea? It's not big, the land size is about 110 square metre and it's two storey terrace.

The area I'm interested in is around alexandria/green square as with the town centre project seems to be going off soon, I thought it's a good idea to look around the area. Am I deluded?

Also, since this is off the plan, I don't know how good the builder is. Anyone heard of Newland construction? Their website looks decent.
What's the difference between builder and developer anyway?

What do you think of the idea of buying terrace house off the plan in this area?

Any other advice appreciated!

Thank you in advance.

 

[Colin Rice]

Dont know the area but look for comparable established products to avoid overpaying.

Be aware that if the valuation on completion is less than your purchase price you will have to make up the difference or risk loosing your deposit and potentially be up for the shortfall for the on sale to some one else. Make sure you have buffers in place.

The bit the sales guy wont tell you about ^^^^^

On the positive side if you buy in at a good price and the market rises you are ahead of the game.

The bit the sales guy will push to get you to buy ^^^^^

 

[Propertunity]

I'm thinking of buying a terrace house/townhouse off the plan, is this a bad idea?
Am I deluded?

Yes, probably

Also, since this is off the plan, I don't know how good the builder is. Anyone heard of Newland construction? Their website looks decent.

I don't put much faith in the quality of a website, to determine the quality of a builder or other trade.

What's the difference between builder and developer anyway?

Builders do the actual construction. Developers come up with the idea, the finance, and the marketing. Both go broke with monotonous regularity.

What do you think of the idea of buying terrace house off the plan in this area?

Buying OTP carries with it a number of risks. I'm personally risk averse.

Any other advice appreciated!

Safer to buy something already established. I'm not saying it can't work, but for OTP to work, a lot of things need to line up in your favour.

 

[lewis]

I know the area quiet well and judging off recent sales in the area you would be close to paying around $800,000+.

At this price point you are dealing with professional developers not so much your wog builder turned developer because the market is hot. Usually pro developers do the right thing by their clients and build a good quality project however this isn't always the case. Ask the developer to give you an address of some of his past projects so you can judge for yourself his experience.

The area doesn't have too much supply coming on in the town house market but make sure you get parking or then it won't be worth it.

 

[Hinurab]

It's actually looking at $1m+, there's one near the area went for almost $1.2m.
http://www.domain.com.au/Property/For-Sale/House/NSW/Beaconsfield/?adid=2010644567

Might do a bit more research into it.
If I do want to proceed with an offer, what would be the next process? Get a copy of the contract for solicitor to review? getting loan secured (what would be the best one currently)?

Sorry for the silly question but I haven't done this for a long time.

Thanks all.

 

[Pianissimo]

I bought one off the plan terrace years ago and it turned out not bad at all.

Land size is around 200sqm and the floorplan is good with 4 bedrooms, 3 bathrooms and a double garage.

Since it is a terrace, there is no common area and no body cop.