what are the pros and cons of buying off the plan?
I've seen a deal where it requires $2500 as a deposit and the rest at settlement.
The upside I can see is that whilst the property is being completed, it increases in value.
What are the downsides??
ThanksRL
There are a few downsides as well, such as:
– could possibly drop in value
– could drag out and be completed much later than expected
– you could lose your job or have trouble coming up with finance at settlement. Especially in this climate, rules for lending are tightening up all the time.
– there is an opportunity cost as you may not want to do other deals in the meantime while waiting for this one, and you may miss out on potential profits.Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
draw back – property value of finished product drops and developer decides to pull out of the development.
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