Buying apartments off the plan?

Can anyone share some experience on buying a new apartment off the plan in a a major urban area (lets say within 15km of a major city). Oh and I am talking about a fairly substantial development lets say 10 storeys+ (Not just buying off the plan for a unitblock with 6 total units)

Have people had negative or positive experiences with these?

Just from what I have learnt over the past year from books, magazines and this forum. I would think to steer clear of them due to the following reasons:

- Insecurity, as development has not yet commenced/completed (always a risk something may go wrong or developer bust, etc.)
- It seems to me that even when you buy off the plan, by the time the building is finished in a year or so it is still valued the same anyway.
- Once building completed there would be a strong influx of identical apartments for rent which may lead to a longer period of vacancy or being forced to drop the rent to secure a tenant.
- Newer highrises seem to have higher body corporates with the lifts, gyms, theatres, etc. and these sting when you have to take them away from the rent and even more if you have periods of vacancy
- And living on the gold coast I am a bit scared of apartments after seeing the oversupply and prices crashing

It just seems to me that buying a brand new apartment off the plan would be more suited to a person looking for a PPOR rather than an IP. But hey I don't know, that is why I am on here hah.

I know a lot of the factors on whether it will be successful or not would be the supply and demand of the market and the demographics of the area.

But can anyone share their views/experiences on buying off the plan apartments in highrises as investments and not for PPOR??

I am leaning towards staying clear of them all together but it does make me wonder if some of these exceptionally designed high rises in good areas with outstanding appeal and architecture will prove to be good investments in the medium to long term?

I expect that I will focus more on houses and units in small blocks. But any info on high rise apartments would be great.

Cheers,
YPG
 
- It seems to me that even when you buy off the plan, by the time the building is finished in a year or so it is still valued the same anyway.
YPG
This is quite WRONG!

This subject has been discussed ad nauseum on the forum here.
For a read of the literally thousands of posts on the matter do a google search.
site:somersoft.com "OTP" or
site:somersoft.com "off the plan"
That should keep you busy for a few weeks :)
 
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