Do your due diligence when buying off-the-plan

Do your due diligence when buying off-the-plan
Michael LaurenceApril 2, 2013

Nothing can be more important than ensuring that the correct research and checks have been conducted and that you are going into the purchase with your eyes wide open.

First, it is absolutely essential to understand the buying process, precisely what funds are required and when you will need them.

This will allow you to make an accurate cashflow analysis. It should cover investment and risk.

High potential returns often equal greater risk, and vice versa. Take the time to identify the potential risk, and the returns that you have calculated should be acceptably balanced.

It is important to settle for a purchase that suits your financial situation and investment targets.

“Be vigilant with money, and have your finance lined up when you put down the deposit. Don’t be caught out at settlement by not having finance ready. Something as simple as changing jobs and entering into a probation period can affect your capacity to get finance,” says Carolyn Chudleigh, partner of law firm Holding Redlich.

If you are planning to buy off the plan interstate, familiarise yourself with the laws and taxes of that state.

And if you have a friend or relative in that location ask him or her to go and physically see the site since there could be any number of factories or other developments nearby that could impact your decision.

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.

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