3 Myths About Off the Plan Busted
Buying off the plan is a popular investment strategy for many Australian property buyers. However, there are many common misconceptions about this strategy that leave a lot of homebuyers weary. Buying off the plan essentially means that you are purchasing a house or property that is not yet built, or is in the process of being built.
Buying off the plan can be a really great investment opportunity, as well as a great way to save money on your new home. Here are a few myths that we’ve busted about this strategy.
Myth #1: Builders Don’t Always Deliver What They Promise
Many people worry that the builder will take their money with a promise of a great house and then deliver something that is subpar and valued at far less than you paid. However, if you choose a reputable building company, this isn’t something that you have to worry about.
A good building company that provides off the plan house and land packages will not only have many references and a good name in the industry, but they will also be able to give you a serious hand in the construction of the home.
You should be able to select the block of land, as well as the home design from their collection. Ask if they give you an option to visit their nearest display home. Look for a company that will be able to show you exactly how your home will look on the block you chose, and one that keeps you well informed and updated throughout the build.
Myth #2: The Price is Too Good to be True
It’s not too good to be true. In fact, when developers first offer their products to the market, they want to encourage a faster sales rate. This is why they offer lower prices. Prices will rise once construction starts, so it’s a good idea to commit early for the best price.
Myth #3: The Market Could Turn Against You
We won’t say that this can’t happen, but it so rarely does. What we mean by this is that when you buy off the plan, you secure the property at that day’s price. You’ll pay a 10% deposit when you sign the contract and don’t have to pay the rest until the property is finished. Some people worry that prices may suddenly fall, which means you end up paying more for the value of the house and land. However, that almost never happens in Australia. What is more likely to happen is that you’ll enjoy the benefit of capital growth that accrues on the property as you get the rest of your funds in order to pay off the remainder when construction finishes.
There are many benefits to purchasing off the plan house and land packages. Feel free to contact McDonald Jones Homes for more information about these deals in NSW, ACT and QLD.