Many buyers make a decision to purchase off the plan in the hope that the market will increase as the development is being built. In an upcoming property market that we have just experienced, many off the plan purchasers have had huge capital gains due to the timing of there purchase.
These purchasers have also had the benefit of buying new property that will not be inclusive of a GST.
This might sound all well and fine at the time, but please understand the difficulties that may be incurred when purchasing off the plan.
You are viewing a model rather than the finished product, and this can be very different to what your new property looks like when it is finished.
Please make sure you check all your builders insurance's and that your solicitor runs through the contract with a fine tooth comb allowing you to rescind if the project is not running to schedule.
I have seen numerous projects off the plan, some running as late as two years off the promised completion date.
With the new GST coming up many people are panicking and purchasing property off the plan, believing that they will save a lot of money doing so.
My theory is that there is so much new property on its way over the next twelve months that you will save a lot more than 10% on your purchase price should you sit back and wait a while.