Hi all,
I am looking to invest in a 2 bedroom unit in Liverpool NSW.
At the moment I don't know whether it would be better to buy an off the plan, a pretty new unit or an old one.
How do you usually decide which one you would go for?The median price is around $250K and I may be interested in buying either an off the plan which is above $400K or a unit at around $330K
Thanks for your help
Alex
Hi Alex
Guess no one can give you a right or wrong answer but i think it all down to value for money.
In buying a second hand unit you have something to gauge the price against and that is comparative sales in the area.
When buying off the plan you are usually buying a property at a fixed price in the future.
One issue we are seeing in a lot of OTP properties is the valuations are not coming in at purchase price.You are relying on no changes to the market between Contract date and a future Settlement date.
On an existing property your Mortgage Broker should be able to order a valuation upfront for you once the Contract has been signed
and at least you can see what the valuer thinks of the property prior to exchange of contracts.Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
yeah. if you buy a totally new and off the plan unit, then there's no historical data about the place to help with your investment. Although if it's off the plan and nearby other similar units in the neighbourhood, then that might help give you a better understanding of the potential returns and investability
Thanks all for your answers.
Why would you want to pay $70,000 more for a new unit? In 5 years time they are both older units. So you are willing to buy something that is almost double the median of the area. Very risky.
Be VERY careful when buying off the plan.
For $330K you can get a house in Liverpool. Do some more research.
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