Question on Of The Plan Purchase

[Angel]

Thanks for the very detailed reply, sorry for the delayed response, haven't been on the forums for a few days.

In terms of research on the developer this was a dead end. The company (Tilrox developments) have no website, and when I finally got through to a director he said that yes of course they have done many residential high rise developments before, but no, if I needed some past projects I would need to speak to the real estate agent.
What a tool. If his company was any good they should stand by their work.

So by now you have worked out that this may not be the best purchase for you.

 

[Terry_w]

Most developers would only do one project per company for risk reasons.

 

[Scott No Mates]

Most developers would only do one project per company for risk reasons.

These guys read from a different book (unless they set up different companies for each site of course but spruik their track record ):

Hyecorp

Thirdi

Sakkara

 

[Connolly]

Hi all,
I have been trying to find some OTP information on the forum, and can't seem to find the answers I'm looking.... so YES, I am certain that the same questions ahve been asked about 1000x before, but I'm too think to find them. Please direct me to the comprehensive OTP thread if there is one...

I'm looking at an OTP, because of the NSW gov't generous grants and Stamp Duty exemption. But I am totally new to property (duh) so I don't really know what sort of questions I should be asking the agent, or more importantly what homework is required to check out the developper is legit, and can put together a solid high rise. I googled them, and called there office but despite being around "since 1960" there is bloody little written about them anywhere.

Or maybe as long as my lawyer does a good job with the contract, or if the builder has the right insurance. This is the important stuff?

Construction has not started yet (should start in the next couple of weeks). There is no display suite. Any advice would be appreciated.
Thx

Hey Kipp;
Depending on your strategy, risk profile and future goals however if you-
Don't want to accrue multiple properties over the first few years + want to be paying off something that is valued less than you paid for it + enjoy the idea of negative gearing then it sounds like it might be a good fit.

Our first was OTP which we bought of a spruiking one stop shop company. We were sold the dream and worse still we bought into it. Cost us just shy of $20k to exercise the and or nominee clause and walk away and funnily enough now 3 years after the project settled they are still selling $40k under what they were selling for. Some poor poor people have been in the hurt locker since that day.

My suggestions, read books, read this forum everyday. Learn how the guys and girls that do really well in this game play. You will see that few if any buy OTP as part of their strategy.

All the best

 

[Terry_w]

These guys read from a different book (unless they set up different companies for each site of course but spruik their track record ):

Hyecorp

Thirdi

Sakkara

Possible they might set up Company X - which is fully owned by the XX group Pty Ltd with common names used.

But there may be some long term developers using the one entity for multiple prjoects.

 

[The Y-man]

Long term developers I can think of from the top of my head (not saying good or bad!!!):

Central Equity
Mirvac
Sunland

The Y-man