?Is buying off plan a good idea for first interstate IP?

Hi All

I have been looking at property in few suburbs of perth since past few weeks for my first IP, and I noticed that land and house packages available in number of them offering descent land size and brand new house. They also seem to be same price (cheaper in some cases) as established property. (Do they negotiate the price of this same as established property?)

This has been tempting for me, although I have a mind set that buying off plan will be more risky, specially interstate and being my first IP, don't really much experience about this. can I please have your opinion on this?

I also came across some NRAS, till now I was not really considering this till now, but doing some calculations now just to get clear idea . Can you share your thoughts on this as well please?

Cheers
AVS
 
Hi All

I have been looking at property in few suburbs of perth since past few weeks for my first IP, ....
This has been tempting for me, although I have a mind set that buying off plan will be more risky, specially interstate and being my first IP, don't really much experience about this. can I please have your opinion on this?

I also came across some NRAS, .....AVS

Hi AVS

Congratulations on your decision to buy your first IP. But quite frankly, why would you look to buy your first IP interstate? Why not try and find one in your home town first? If you look closely, there are plenty of excellent IP opportunities in ADL. Plenty...

For off the plan and NRAS, search the forum - there are some good posts on the topics. Cheers.
 
I have to agree with Logica. Also I would stay well clear of off the plan purchases. There are a lot of things that can and generally do go wrong.
 
I don't necessarily see a problem with a interstate purchase for your first IP, but being combined with an OTP may increase the variables you could be dealing with somewhat! With some properties being cheaper than estab's, are the OTP's covering full landscaping, driveway/perimeter concreting, air-con etc.

Consider whether it might be worth having a more simpler purchase so you can gain your 'sea legs'.

Out of interest, are you looking at Perth because of the mining? Or other reasons?

Congrats on taking the initial steps in your financial journey.
 
Hi All

I have been looking at property in few suburbs of perth since past few weeks for my first IP, and I noticed that land and house packages available in number of them offering descent land size and brand new house. They also seem to be same price (cheaper in some cases) as established property. (Do they negotiate the price of this same as established property?)

This has been tempting for me, although I have a mind set that buying off plan will be more risky, specially interstate and being my first IP, don't really much experience about this. can I please have your opinion on this?

I also came across some NRAS, till now I was not really considering this till now, but doing some calculations now just to get clear idea . Can you share your thoughts on this as well please?

Cheers
AVS

welcome

Both NRAS and OTP have risk and gain issues that arent part of buying a normal completed purchase

Are these things suitable for you ?

No idea.........since we know very little about your resources, goals and aspirations.

OTP can be a valid tool especially with H&L packages (but less so with multi unit high rise developments), but a lot comes down to market cycles (market risk) managing your personal risk ( which revolves more around finance risk)

NRAS is a separate thing altogether that will be a great fit for some, and a dog for others, again without knowing your personal circumstances, its a hard gig !


ta
rolf
 
Hi AVS

Congratulations on your decision to buy your first IP. But quite frankly, why would you look to buy your first IP interstate? Why not try and find one in your home town first? If you look closely, there are plenty of excellent IP opportunities in ADL. Plenty...

Why not look interstate? There are a number of markets other than Adelaide that have better prospects right now. Depending on your strategy, limiting yourself to your home city may be seen as a safe option, but perhaps not the best option.
Are you looking for capital growth or cash flow? Or is the reason you're considering OTP is simply for tax benefits? On the latter, there's nothing necessarily wrong with OTP. Yes, developers selling OTP can be unscrupulous, and can quite often sell above market value, and/or in an oversupplied area. Just make sure you do your due diligence to make sure you're getting a deal at a fair price, that suits your strategy.

That's not to say that you should rule out Adelaide, I'm saying just don't limit yourself, particularly if you're after a set-and-forget investment. But again, do your research and due diligence to make sure you purchase something that suits your strategy.
 
Hi AVS

why would you look to buy your first IP interstate? Why not try and find one in your home town first?.

Thanks for your comments:). I had ADL as my preference earlier and looked at few properties as well, but after researching more, I see more potential in WA (read at numerous places and got opinions of few friends) so decided to buy in Perth.
 
Out of interest, are you looking at Perth because of the mining? Or other reasons?
.

Thanks CJay for your comments. As I mentioned earlier, from what I have researched so far, Perth have more potential of growth so thought it would be a good option.

Also I may be moving to perth in next few years so it would be good to have a property in there.
 
All, Thanks for your reply.

Sorry I should have mentioned my goals, I am looking for Capital Growth, If can get more tax benefits along with it, it would be a bonus hence started looking at NRAS.

In the suburbs I was looking, there were number of H & L packages available at good price hence thought to have a look, but as I mentioned was more worried about the risks involved with it hence was looking for opinion on it.
 
All, Thanks for your reply.

Sorry I should have mentioned my goals, I am looking for Capital Growth, If can get more tax benefits along with it, it would be a bonus hence started looking at NRAS.

In the suburbs I was looking, there were number of H & L packages available at good price hence thought to have a look, but as I mentioned was more worried about the risks involved with it hence was looking for opinion on it.

Perfect timing. FYI

http://theage.domain.com.au/home-investor-centre/buy-with-confidence-20120907-25htk.html

Peter
 
for d
Hi All

I have been looking at property in few suburbs of perth since past few weeks for my first IP, and I noticed that land and house packages available in number of them offering descent land size and brand new house. They also seem to be same price (cheaper in some cases) as established property. (Do they negotiate the price of this same as established property?)

This has been tempting for me, although I have a mind set that buying off plan will be more risky, specially interstate and being my first IP, don't really much experience about this. can I please have your opinion on this?

I also came across some NRAS, till now I was not really considering this till now, but doing some calculations now just to get clear idea . Can you share your thoughts on this as well please?

Cheers
AVS


There are plenty of land and houses packages available in Perth and with depreciation and other deductions will be attractive and nothing really wrong with this, however these will be the outer fringe areas.

You mention that your main goal is capital growth, you may need deeper pockets for this as you may need to look at areas closer to Perth, or properties that provide some sort of twist ie development potential etc.

Some areas currently experiencing growth are:
North Joondalup
Craigie

and a few other areas :)

Cheers, MTR
 
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