Hi, I am sort of a new invester, I have always dabbled in Shares and never looked at the property, so I know little or nothing about investing in property, I am looking for capital gain in Melbourne or surrounding areas,prefablly some thing off the plan, so the questions are
where do I get more information from? how does off the plan properties deals work? (is it I pay 5% and pay the rest when complete? or buy an option to buy in a project?positives, negatives ?? if any one can help pleaseHi syedh18022
first off whats the question.
you need to walk before you run.
ask one question at a time and then you will get the answer you want.but first read thru the different section at the front each in turn then ask the question.
no point in asking 5 question in a line or you will get no answers at all.here to help
Hi Syedh,
I’ll try to answer some of your Qs.
Q where do I get more information from? try The Age Saturdays,
Q how does off the plan properties deals work? (is it I pay 5% and pay the rest when complete? or buy an option to buy in a project?[i]Normally you would sign a contract for sale and pay the deposit, generally 10% then wait for it to be completed if it has not been constructed
Q positives, negatives ?? Heaps this is where you need some learning, but I’ll list a few:
POS: you have a completed house with features / colours / fitout the way you want;
all the hard work has been done;may pay less stamp duty.Neg: you’ll pay more as they are doing all the hard work.
These are just afew that come to mind. I’m sure otheres will add to this list.
You could do a search on this forum for “buying off the plan”.
Hope this helps.
hrm
As a new investor you will learn a lot by reading some of the current and many of the old posts on this forum.
Then forget what you learned about in shares because investing in property is VERY DIFFERENT.
Many share investors try to make money trading – this doesn’t work well in property.
As a beginning property investor you need to work out what you are trying to achieve. What are you after? Capital gains or cashflow?
Avoid off the plan – it’s the wrong time in the cycle for this, as success in this strategy depends on buying well below market price and strong capital growth.
Learn all you can, read some good books, choose a team of advisors (but be careful who you listen to).
You will find some interesting reading for beginning investors on one of our web sites under investors learning centre at http://www.buyingmelbourne.com.au
Good luck with your journey
Michael Yardney
METROPOLE PROPERTIES
Author of Australia’s leading property e-magazine.
Join over 10,000 readers each month.
FREE subscription http://www.metropole.com.auI am a Property Manager and have seen many bad experiences with purchasing off the plan. Make sure you go in with your eyes wide open and know exactly what you will be getting at the end of the process. Go as far as mapping out the room sizes in your back yard or park so you know the sizes of the rooms. Looking at plans on paper will not be clear if you have not done it before!! My advise would be to engage a professional to help you with purchasing investment property rather than risk it yourself. It always amazes me when people pay real estate agents to sell their property but not to get the advise in the first place when outlaying hundreds of thousands of dollars!!!
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