All Topics / Help Needed! / Is buying of plan good idea for first IP?

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  • Profile photo of AVSAVS
    Participant
    @avs
    Join Date: 2012
    Post Count: 15
    September 9, 2012 - 4:50 am

    Hi All

    I have been looking at property in few suburbs of perth since past few weeks for my first IP (I am looking at interstate properties), and I noticed that land and house packages available in number of them offering descent land size and brand new house. They also seem to be same price (cheaper in some cases) as established property. (Do they negotiate the price of this same as established property?)

    This has been tempting for me, although I have a mind set that buying off plan will be more risky, specially interstate and being my first IP, don't really much experience about this. can I please have your opinion on this?

    I also came across some NRAS, till now I was not really considering this till now, but doing some calculations now just to get clear idea . Can you share your thoughts on this as well please?

    Cheers

    AVS

    Profile photo of Scott No MatesScott No Mates
    Participant
    @scott-no-mates
    Join Date: 2005
    Post Count: 3,856
    September 25, 2012 - 6:55 am

    Look at your known factors:

    Current vacancies
    Current rent
    Planned supply
    Competition at time of completion etc

    Then consider if this will be better or worse than buying an established property

    Profile photo of Jamie MooreJamie Moore
    Participant
    @jamie-m
    Join Date: 2010
    Post Count: 5,069
    September 25, 2012 - 8:12 am

    Hi AVS

    If you do a search for off the plan or OTP on the forum you'll find a heap of information covering the pros and cons.

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
    http://www.passgo.com.au
    Email Me | Phone Me

    Mortgage Broker assisting clients Australia wide Email: [email protected]

    Profile photo of TheFinanceShopTheFinanceShop
    Participant
    @thefinanceshop
    Join Date: 2012
    Post Count: 1,271
    September 25, 2012 - 8:20 am

    Very rarely is it a good idea to purchase off the plan. NRAS is another story all together. Be very careful NRAS doesn't suit all investors and you need to be careful of the stock. Some are great and some not so much. What's your investment strategy for the next 5-7 years?

    TheFinanceShop | Elite Property Finance
    http://www.elitepropertyfinance.com
    Email Me | Phone Me

    Residential and Commercial Brokerage

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