OTP Unit in Newcastle

I've been offered an opportunity to purchase an off the plan 1 bedroom unit on King St Newcastle. There are 30 units in the development and its being constructed by a reputable developer that has produced quality results in the past. Its walking distance to the new Law courts and Law faculty, which will be completed in just over 2 years. With the Icon development (over 120 units) 400m away and numerous other unit developments close to the Newcastle CBD I am after some educated opinions as to whether or not this would be a wise investment?
 
.... I am after some educated opinions as to whether or not this would be a wise investment?

In my opinion, OTP purchases have many risks associated with them. Do a google search: site:somersoft.com "OTP" for some mostly bad tales, then come back here and we can talk some more.
 
Agree with Alan.

There are lots of pros/cons to consider with OTP with financing probably being the biggest.

The core issue is that you're unable to obtain formal approval for finance until the property is completed (or close to) so if the valuation doesn't stack up and/or your financial situation chances between now and then - you could find yourself not being able to complete the purchase.

As long as you're aware of the pros/cons (there's usually more of the latter), carry out extensive due diligence on the property/developers/market and have risk mitigators in place (large deposit helps) then OTP can be ok....still not for me personally though.

Cheers

Jamie
 
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