buying an apartment off plan what determines how profit to be made from this and how is this best realised
cheers
Hio alwayslearning,
Buying off the plan is a somewhat risky if you want to flip the property. You should always be ready to settle on the property if need be. Make sure you have done your research on the area, developer, etc before you get into a contract. Few things that might help you in an off-the-plan deal are:
* Buy in an area showing growth
* Buy in Stage 1
* Do not buy in a high rise (say > 3 levels) apartment block
* Do not buy too many off the plans at the same time (make sure you can settle on them, if need be)
* Do not buy in developments that have hundreds of properties. If they all become available at the same time, it will put downward pressure on prices and rent (demand and supply)
* Its better to have settlement 12 months after contract date. In this case, you can borrow against the end valuation rather than contract price. Assuming the value has gone up in 12 months, you have to put less money in the deal.
Hope this helps
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