Hi all,
I am considering buying a house and land package in Melbourne. However I am trying to weigh up the advantages and disadvantages.
Does anyone know if property developers price is final or is there room to move? Are there any GST implications as well.
I am attracted to buying off the plan because of not paying stamp duty on house but just on land and depreciation can be extended longer. However in the long run this might not be cost beneficial.
What do people think?
Thanks in advance.
Hi pman,
What your purpose in buying off the plan? Is it an investment? If so , what do you plan with? Hold? Sell? Live?
Is it in a new devolopment area?, such as a new suburb for example Caroline springs?
The reason i ask is cos if your after a capital gain it tends to be slow in those areas cos the developer genarally controlls how much your investment will appreciate.
The reason being cos while there is still developments in the area or house and land packages being sold they tend to dictate the prices.Hope this helps
John
Unless the developer is going into liqudation and properties going for an undervalued price. I would not buy anything off the plan. I like things that you can add value to after renovating or subdividing. You cant do that with new properties.
Do a comparative search for sales in the area, you'll find that new properties off the plan tend to be priced above the median value for the area, that means that there is very little room to grow. You will be at the mercy of time to get an appreciation on your investment and there is nothing you can do to increase the valuation!
Older style houses on a large block are a better investment (well I think so anyway!), even if they do have less tax benefits and attract stamp duty!
Hi,
I am looking to invest and hold. I earn 100K and have estimated with a new property I can have +ve cash flow property if the depreciation is around 10K. Is that overestimating for a new house at construction cost of about 150K?
I have decided not pursue off the plan but have my eye on newly constructed properties for sale and negotitating a better price. Has anyone had much success at negotiating discounts with property developers?
Thanks ahead!
You must be logged in to reply to this topic. If you don't have an account, you can register here.
