Hi everyone, I am in a position where I need to clear debts, save a deposit & then realistically look at purchasing my first property hopefully in Victoria. Bit of a late bloomer I know. I have only just begun to look at my options which are either putting a deposit on a off the plan property or striking a deal with a vendor. My question is what do you think is best for me? I am prepared to do research on different developers with off the plan properties, but where do I start with finding out about vendors who are wrapping in Victoria? I am very new to this and would appreciate any comments. [
]Hi Evelyn,
You’ve taken the first step in identifying that property investing is a great opportunity. You now need to sit down and work backwards. What I mean by this is first set some goals, work out what you ‘want’ out of investing (is it a weekly income, to build wealth for future retirement..) and most importantly put a timeline to all of this. You then need to take an honest look at your current financial position and outside commitments. From this point, bring everything together and look into some investing strategies that will allow you to achieve what you want.
Without knowing your level of debt, income etc. I would suggest that off-the-plan buying would probably not be a wise way of starting out. This is considered ‘speculative’ investing in that you’re hoping the returns will eventuate. You may wish to look towards buying property for cashflow returns to begin with to assist in paying off your current debt and providing a solid base to build on.
Hope I’ve helped, Leigh
“If you can count your money, you don’t have a billion dollars”
J. Paul GettyHello Evelyn,
You have come to the right place.
My advice would be try to avoid an off-the-plan property. The facts are there that there is already a huge over-supply, causing values to plummet.
Usually 10% deposit is required and then it is often 18 mths to 2 years to wait until completion. Nobody can predict what the value will be upon completion. You might be lucky and it might increase, however chances are it will still not be at the value of your contract price.If I were in your situation, I would strongly consider going into a wrap with a vendor of a property. That way, you can secure a home with minimal deposit (and First Home Owners Grant) within a few weeks, stop renting,[
] and in 2 – 3 years when your equity builds up, refinance it with another lending institution, to reduce your interest rate (if you choose to).The price of the property can be determined by your choice, as quite often vendors will allow the purchaser to find their own property, as long as it meets with vendor’s guidelines. Usually the chosen property will cost MUCH less than an off the plan property. There is a good article in this months Property Investor Magazine, called “New or established propery” discussing the pro’s and con’s of off-the-plan properties.
There are several people on this forum who would be happy to offer you a wrap property, subject to their usual criteria, but this forum is not a place where we can advertise for business.
I hope that I have not been too biased, however, I have some friends that purchased an off-the-plan property and REALLY REGRET it!!![
!]Take your time and don’t let the sharks get you!!
I would be happy to answer any more questions you may need answering, so feel free to chat away on the forum.
Good luck,[
]Del
Thank you for your advice, I will be taking everything into consideration. It is a relief for me to find good advice from people who have been there and done that. Everything seems so new & exciting and I know there is a lot I need to gain the knowledge to succeed in what I want. In my journey I will not be deterred by my own personal fears and will take each step with eyes wide open [
]. In relation to getting in touch with vendors offering wraps, would I need to contact any particular organisation, ie. real estate agents? solicitors who deal with vendor term contracts? or is there a site I can get contacts off?Hi Evelyn,
Perhaps a good place to start would be Steve McKnight @ Property Investing.com. The telephone no. is 03 9897 1477, or email him at [email protected].
Tell Steve you were referred to him from the forum, and wanting some info about wrapping.
He will either help you himself, or put you in touch with someone else who can.[
]If you decide to go down this path, it should be a simple process for you with contracts etc. that the vendor can help you with.
Hope it all goes well for you.
Del
Hi again,
There are plenty of active wrappers on this forum so I might suggest that you leave your email and where you’re from in a post. Chances are someone will be wrapping in that area and can either help you out themselves or know someone that can. Check with admin before posting though because it may be against forum rules to leave that sort of post.
You could also try ringing PropertyInvesting.com as I’m sure they’ll be able to put you in contact with someone in your area.
I’m from the Melbourne area and I’m currently looking into wrapping some properties and would be more than happy to help you understand the process if you’re not sure what it’s all about. My email is [email protected]
Good luck, Leigh.
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Usually 10% deposit is required and then it is often 18 mths to 2 years to wait until completion. Nobody can predict what the value will be upon completion. You might be lucky and it might increase, however chances are it will still not be at the value of your contract price.
] and in 2 – 3 years when your equity builds up, refinance it with another lending institution, to reduce your interest rate (if you choose to).
!]
]
]. In relation to getting in touch with vendors offering wraps, would I need to contact any particular organisation, ie. real estate agents? solicitors who deal with vendor term contracts? or is there a site I can get contacts off?The topic ‘On the Outside Looking In’ is closed to new replies.
