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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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