Powered by MOMENTUM MEDIA
realestatebusiness logo
Powered by MOMENTUM MEDIA

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

news image

The ‘boss’ business model and why it no longer works

April 02, 2020Grace Ormsby

For collaborative leaders and valued teams, it’s always a good time to be in real estate, according to a network chief. ...

REB_top100agents
top 10 agents

1

ALEXANDER PHILIPS

Year of Experience: 17

Support Staff: 5

Residential Properties Sold: 208

Total Value of Residential Properties Sold:

$614,864,500

VIEW COMPLETE REPORT

Have you experienced sexual harassment or bullying in the workplace?

Yes, I've been the victim of sexual harassment
Yes, I've been the victim of workplace bullying
No
TECH MARKETING SALES BETTER BUSINESS PROPERTY MANAGEMENT
computer 850x400 How agents can best utilise proptech

With digital disruption showing no signs of slowing down, agents are being encouraged to utilise technology, rather than ...

searching the internet reb Real estate boss shares marketing tactics

The owner and CEO of an elite Queensland agency has revealed how being conscious of both print and digital marketing has ...

Kylie Davis reb 6 predictions for real estate in 2020

It’s the start not just of a new year, but a new decade. With the rise of proptech and so much technology enabling cha ...

Proptech Association of Australia reb New proptech association hits Aussie market

A new association has been rolled out which seeks to raise awareness of proptech within Australia’s real estate sector ...

Louis Christopher WEB How to analyse property data

Property data is undeniably a critical tool, but how does one navigate the abundance of information available without p ...

Graeme Hyde WEB What makes a high-performing office?

With 25 years of industry experience under his belt, Graeme Hyde understands the formula for a successful real estate of ...

Tara Bradbury WEB A completely paperless approach to property manage ...

Tara Bradbury launched Active Agents last year as a means of presenting an entirely paperless property management operat ...

James Lampropolous WEB A project marketer’s take on being a successful ...

As REB’s top-ranked project marketing agent with over 20 years of industry experience, James Lampropoulos advocates fo ...

Louis Christopher WEB How to analyse property data

Property data is undeniably a critical tool, but how does one navigate the abundance of information available without p ...

Graeme Hyde WEB What makes a high-performing office?

With 25 years of industry experience under his belt, Graeme Hyde understands the formula for a successful real estate of ...

Tara Bradbury WEB A completely paperless approach to property manage ...

Tara Bradbury launched Active Agents last year as a means of presenting an entirely paperless property management operat ...

James Lampropolous WEB A project marketer’s take on being a successful ...

As REB’s top-ranked project marketing agent with over 20 years of industry experience, James Lampropoulos advocates fo ...

Positive Mindset in Business reb The impact of a positive mindset in the business o ...

Let’s be real: running a business or an office is stressful. Here’s a quick rundown of some insights on keeping yo ...

Cameron Black reb Lies and statistics: Has the property market actua ...

It seems like there has been a huge change of sentiment in the last month as a confluence of factors has come together t ...

short 850x400 june2019 How to get that big win

Getting a big win is more than just sales. It involves strategic planning and setting goals, according to real estate bu ...

MeganSmith 050719 cropped Ray White’s Megan Smith sells $14m property in B ...

Ray White Balmain sales dynamo Megan Smith has sold one of the most expensive houses in Australia this year, with the pr ...

forrent house reb 1 Eviction freeze only fixes one side of rental equa ...

The government is being urged to implement immediate rental subsidies for tenants bearing the brunt of COVID-19. ...

Peter Koulizos reb Wage subsidy to ‘relieve financial pressure’ f ...

The federal government’s recent JobKeeper wage subsidy is set to significantly help relieve rental and mortgage stress ...

Bradley Beer reb New online calculator to ‘revolutionise’ prope ...

In what’s being described as a market-first, BMT Tax Depreciation has launched a new online calculator which it says w ...

Scott ONeill reb Strategies to help your tenant if they are affecte ...

Many businesses over the next few months will be forced to shut their doors to slow the spread of COVID-19. The importan ...

EVENTS
REB Awards 2018 logo 01 1
Real Estate Business Awards 2020

The REB Awards is the benchmark of success in the Australian real estate industry. It reflects not only the business astuteness of the country’s leading real estate operators and networks..

Learn more >
FROM THE WEB
Recommended by Spike Native Network

Why we’ll keep delivering for our communities in the face of COVID-19

alex

As Australia tries to keep pace with a rapidly changing business and social landscape in the wake of COVID-19, Momentum Media is leading the way delivering essential content to our communities, writes Alex Whitlock, director of REB.

Read more
Do you have an industry update?

The six pros and cons of buying off the plan

06 August 2014 Jeremy Fisher

Although there are several advantages to buying off the plan, buyers should also make themselves aware of the potential drawbacks.

Property developers who build strata units and retirement homes often make the properties available for sale before they are finished, sometimes before construction has even begun. This is known as selling ‘off the plan’, and buyers can purchase these properties in advance. Although there are several advantages to buying off the plan, buyers should also make themselves aware of the potential drawbacks.

The benefits of buying off the plan


Discounted price

Advertisement
Advertisement

When a property is sold off the plan it is offered for sale at the current market price, but the properties generally take a few years to build so the price is likely to rise with inflation.

Small capital outlay

A buyer is able to secure a property off the plan by putting down a small deposit, usually 10 per cent, with the balance payable upon completion. This gives buyers time to arrange their finances and potentially be in a better financial position when the balance of the property is payable.

Tax savings

When a brand new property is purchased as an investment, buyers are generally able to claim depreciation on fixtures and fittings as a tax deduction.

Personalisation

When buying off the plan you can often make special requests regarding the colours, finishes and layouts as the property is being built. Modern buildings may also include current lifestyle trends such as open plan living areas, a pool, gym and concierge services.

Stamp duty concessions

Several states offer stamp duty concessions to purchasers of new properties.

Warranty

Like most new items, new buildings up to three storeys high have a warranty on the building structure, which can offer peace of mind for buyers.

 

The drawbacks of buying off the plan


Lack of certainty 

Developers will go to great lengths to give buyers an indication of what the finished property will look like but factors such as the aspect, quality of the build and the quality of the fixtures and fittings can’t be certain. When signing the contract, the buyer should feel comfortable that their expectations may not be met exactly.

Delays

The proposed finish date for a building is generally an estimate and there can be delays.

Developer risk

On some large developments cash flow can be an issue and there is a risk of developers going bankrupt, making them unable to complete the build.

Financing issues

A bank will often provide pre-approval for off-the-plan builds, but the bank will only offer unconditional approval and provide the loan if the property is acceptable in terms of value and quality on completion.

Problems resolving unexpected issues

The property contract will outline how defects are to be amended if such a situation arises. The by law on the property will also outline how factors such as common areas are to be handled. These contracts and laws should be carefully examined.

Higher price

A brand new property will often have a sale price that reflects the newness of the property, just like a new car or a new product. There is also an element of the value reducing initially as the property becomes ‘second hand’ and not new.

Be sure to speak to a mortgage broker or financial planner before buying off the plan.


About Jeremy Fisher


JeremeyFisher 340x408

Director and founder of 1st Street Home Loans, Jeremy Fisher, is one of the most awarded mortgage brokers in the industry and winner of the Australian Broker Association’s prestigious ‘Australian Broker of the Year’.

Since 2001, Jeremy has settled in excess of $500 million worth of property loans and delighted clients with exceptional results and a highly personalised service.

The six pros and cons of buying off the plan
jeremyf
lawyersweekly logo
FROM THE WEB
Recommended by Spike Native Network

Why we’ll keep delivering for our communities in the face of COVID-19

alex

As Australia tries to keep pace with a rapidly changing business and social landscape in the wake of COVID-19, Momentum Media is leading the way delivering essential content to our communities, writes Alex Whitlock, director of REB.

Read more
Do you have an industry update?
REAL ESTATE BUSINESS NEWSLETTER
Ensure you never miss an issue of the Real Estate Business Bulletin. Enter your email to receive the latest real estate advice and tools to help you sell.