buying off the plan- advise needed

[kandi]

Hi guys,

I am interested in buying off a plan townhouse in Wantirna South . I was wondering if anyone can provide me some questions what to ask the real estate agent when I meet up with him to talk about the projects in details and what things to look out for.

Any other off the plan advise would be helpful.

Cheers.

 

[agent007]

Hi guys,

I am interested in buying off a plan townhouse in Wantirna South . I was wondering if anyone can provide me some questions what to ask the real estate agent when I meet up with him to talk about the projects in details and what things to look out for.

Any other off the plan advise would be helpful.

Cheers.

How long will take the project to complete?. How much deposit? Can you do a deposit bond or a bank guarantee instead of paying cash?.
For off the plan purchases, I'll request a clause in the contract that stipulates that if at completion, the bank valuation comes below the selling price the difference needs will be splitted or the contract terminates with no penalty to the purchaser.

 

[kandi]

the project will be built in Sept and finished next year May 2011. Not sure how much deposit I have to pay. what is all the differences in the method of paying and what is the best?

 

[jcwc888]

bought a off the plan townhouse at Wantirna South in 2007 - joelson avenue. It's not a bad area however IR were pretty high and they took their sweet time to build close to 1 year which cost me in repayments. i did however sell it before it was even built. Made quite a small margin - i think the knox shopping centre is great however the lack of transport trains etc makes it hard to move around.

Had a friend too who had a house there who found it hard to find renters.

 

[The Y-man]

Any other off the plan advise would be helpful.

.

Negotiate on the price!

The Y-man

 

[Property Meister]

I must admit, I cannot believe the amount of times whenever I go to any forum ,whether it be property, shares, cars, hobbies, politics, these days where the spelling "ADVISE" is used, its "ADVICE" people!

I reckon I see it twice or three times per day

 

[agent007]

the project will be built in Sept and finished next year May 2011. Not sure how much deposit I have to pay. what is all the differences in the method of paying and what is the best?

If you pay the deposit in cash and it gets released to the developer, should the developer goes down your deposit will follow A deposit bond or a Bank guarantee will protect your position. Though, the deposit bond will cost you while the bank guarantee will put money in your pocket. For the bank guarantee you have to have the money while with the deposit bond you don't need to have the money.
Hope this help.

 

[very_ready]

based on fro ive learnt, really do your research in the area and see if the price your paying is reasonable or not. Dont fall into the trap of ' in may 2011 it will go up 10% forsure'. If the price they are offering is fair then consider it, but do your research first.

As the y-man said, price!!

 

[RightValue]

I must admit, I cannot believe the amount of times whenever I go to any forum ,whether it be property, shares, cars, hobbies, politics, these days where the spelling "ADVISE" is used, its "ADVICE" people!

I reckon I see it twice or three times per day

I have to agree.. It get's my goat as well!

 

[stumunro]

If you pay the deposit in cash and it gets released to the developer, should the developer goes down your deposit will follow A deposit bond or a Bank guarantee will protect your position. Though, the deposit bond will cost you while the bank guarantee will put money in your pocket. For the bank guarantee you have to have the money while with the deposit bond you don't need to have the money.
Hope this help.

it only gets released to the developer if it is stated that it does so in the contract.

normally it just sits in the vendors solicitor or rea's trust account and can't be touched until settlement.

 

[Propertygirl]

Advice/Advise

“Advice” is the noun, “advise” the verb. When a columnist advises people, she gives them advice.

hope that helps!

propertygirl

 

[rugrat]

it only gets released to the developer if it is stated that it does so in the contract.

normally it just sits in the vendors solicitor or rea's trust account and can't be touched until settlement.

Yep. And in some cases it will get invested and any profits made will get split 50/50 (but if it makes a loss, the developer has to wear it )

Be aware that OTP often has a way of dragging out. we were originally going to settle in feb for this one, the lasest report is end of september now (I think it will be even longer.

Don't pay any more then what the property would be worth if it actually existed right NOW - any possible increase is a bonus, and should notr be factored into the purchase price.

Don't be pressured into rushing and research research reasearch.

 

[kandi]

thanks all for the info.

 

[tess85]

I have to agree.. It get's my goat as well!

But this gets my goat even more!

Kandi, hope you found the replies useful, what have you decided on?

 

[crc_error]

buying from a developer usually means they add the cost of stamp duty into your price, and factor in capital gains over the time, and the fact its new..

just be careful your paying a fair price in todays market.

 

[JKay]

For off the plan purchases, I'll request a clause in the contract that stipulates that if at completion, the bank valuation comes below the selling price the difference needs will be splitted or the contract terminates with no penalty to the purchaser.

Hi There,

Is this common practice, and is it likely to be accepted by the developer?

Thanks

 

[rugrat]

Hi There,

Is this common practice, and is it likely to be accepted by the developer?

Thanks

No and No. But you can always try.

 

[Intrinsic_Value]

incredibly simple answer:
if you are asking this forum, then you shouldnt be buying off the plan.

There are occasions when you can profit from buying off the plan, but generally this envolves a high level of knowledge of the local sub-market.

 

[JKay]

No and No. But you can always try.

haha thanks

 

[kandi]

@ tess85- Aparently, I didn't get the chance to meet up with the agent yet, because he wasn't in the office for the last weeks. I don't know yet, it's so complicated. House prices are crazy right now, don't even know what to settle on...