Should we buy before we sell our current home? The main advantage of buying before you sell is that you have certainty that your new home will deliver exactly what ...
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Should I buy a property 'Off the Plan'?

Buying a property before it has been built comes with a raft of advantages and disadvantages:

  • If the market is rising, real estate purchased off the plan can be worth more than the initial price paid by the time construction is complete and settlement comes around.
  • Speculators may quickly realise a substantial capital gain, just days after settlement, having really only invested their initial deposit.

  • You’re buying something that doesn’t yet exist and can’t be 100% sure it will be exactly what you expect or that it will actually be completed.
  • If you’ve speculated on a quick profit and the market falls, or there is limited demand when the time comes to sell, losses can be large.
  • Developers can often alter the plan, based on obstacles that arise during construction, sometimes leading to a larger or smaller property than originally expected.
  • There’s no certainty as to the quality of the completed construction at the time of purchase.
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