Buying early can have its advantages: off the plan

Not only can you often get first pick if you get in early, but there can be sound reasons for buying property off the plan.

Before a property is constructed developers look for presales to give to the bank so it will provide funding for construction.

The GFC has made it hard for developers to get construction finance, and many banks are not willing to part with money unless the majority of the proposed development has been sold.

Many developers are willing to give good deals upfront to secure sales.

Discounts can start from about 5% to about 10% on the completion price and usually the earlier you are in, the better price you can negotiate.

However, you should not rush in to secure an early purchase simply to get a discount until you are satisfied with your investment and the contract you are about to sign.

For great tips on buying off the plan, download Property Observer’s free ebook – 14 tips for buying off the plan: The 2013 guide for investors and owner-occupiers.