I am looking at off plan apartment. However, I am not quite sure how the contract will work? the same as any other contracts when purchasing properties? Can you include conditions as well (eg. subject to finance)?? How would it work if I want to re-sale it before settlement? I just would like to get some advices from anyone who have been through this before, before I talk to the agent. Thanks~
tedman
How long is the building proces? I think it would be rare that you could get subject to finance if building was not due for completion for 12 months or more, however it can be done.
You would need to get your solicitor to check the contract to see if it could be onsold. I think most allow it (I have done several), but some may not.
Why do you wish to onsell prior to settlement? Is it in the hope of making money – a rarer occurence these days from OTP…
Cheers
Meltedman,
If you type “off the plan apartment contract” into google.com.au it will come up with many many articles. You probably need to read a zillion things if this is your first such purchase. The OTP landscape has changed dramatically from say 5 years ago, and as Mel has said, the “flippability” (sorry Mel, for bastardising the language!) of OTP’s is far less likely to result in profit these days. In fact, you may buy an OTP now, and by the time it is built, it may be worth many thousands less.
Get your own independent valuer to assess the worth of the property before you sign a contract, and try to buy into a block that is small, and where your apartment has unique qualities.
Many of the new OTP’s are considered “generic” or B-Grade by investors. You need to find a point of differentiation if you are doing the OTP thing.
Architect designed apartments, such as a Renzo Piano, will maintain value, but a lot of these newer ones… really, I believe they’ll be a long-term buy and hold to get your money back.
kay henry
Thank you Mel and Kay.
The OTP I’m looking at is going to be completed in March 2005. What I like about it is its price (more reasonable than other developments), good location, and no facilities (no pool and no gym). Does anyone know about corporate lease? leasing units to a company for them to use. What is the process to get a lease like that?ted, I think there was a similar question a few days ago…
Basically to get a corporate tenant, look up relocation agencies in the yellow pages and/or contact companies and ask them if they have an in house section that finds leases for their workers transferred interstate. I’ve also found that some real estate agencies handle them – but you have to ask, and also have a suitable property. If you can get a corporate, it can be an awesome return.
Cheers
Mel
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