Buying Property Off the Plans – What Investors Need to Know – Ep. 94

In this episode, we discuss buying property off the plans – which is where you purchase a property and commit to buying it before it has actually been built. 

If you haven't heard about buying property off the plans then this might sound really scary. However, there are some really good reasons why you might purchase an investment property off the plans: 

1. First of all, when you purchase a brand new property, it is not subject to the 30% deposit requirement that banks need in order to give you the finance. This means that banks will happily lend you the money to purchase a property with a 20% or even a 10% deposit. 
2. Because the property hasn't been built yet there is less competition to buy the property. There are no auctions to go to and the buyer has more control in the sale
3. You're able to buy in today's market, however by the time the property has been built and you settle with the developer (i.e. pay them the money) your property may have gone up in value during the phase of the build.

Shelley and Ed then discuss how to protect yourself from a legal perspective by using Sunset Clauses and how to resolve disputes with a developer.