Off-plan real estate investments in South East QLD offer investors many advantages, from lower purchase costs and the ability to tailor their investment precisely. But investors should carefully consider certain key aspects before committing to such an endeavor.
Timeliness should also be an important consideration; investors should understand they may need to wait some time until their new property is ready, which could alter living arrangements and finances. Seek legal and financial advice prior to making any off-plan investments.
Off-plan investing varies significantly from purchasing existing properties, typically involving an upfront deposit and final completion payment upon project completion. An off-plan investment typically offers increased buyer protections than purchasing preexisting buildings.
Off-plan property investments can be an ideal way to take advantage of price growth in high demand areas. But before committing, investors must conduct thorough due diligence on both their developer and real estate agent, as well as purchasing at a location which suits both their lifestyle and future plans.
As Queensland continues to flourish, it faces unique challenges. According to a recent report by the Real Estate Institute of Australia, an increase of 52 per cent annually in new dwellings by 2046 would meet projected population growth; however RPM’s Queensland Managing Director Clinton Trezise believes this target is unlikely to be met under current SEQ Regional Plans due to complex approval processes and land constraints that make seemingly developable land difficult to unlock quickly enough for affordable supply.
High construction costs are driving up apartment costs and diminishing affordability, he states, making it hard for developers to build enough quality apartments within budget, so prospective buyers should exercise caution about current market trends.
On 22 November, new laws were enacted to strengthen buyer protections when purchasing off-plan land in Queensland. These amendments limit when sunset clauses may be used to terminate off-the-plan contracts for land sales and only permit this action when warranted by court order or under other limited conditions.
As such, investors must exercise extreme caution when selecting off-plan property investments as delays or even deposit losses may arise if their builder experiences any significant issues. To protect themselves against this happening, investors should always consult a legal professional prior to agreeing on an off-plan contract, research the developer and neighborhood to ensure they’re investing in an ideal location, budget for unexpected expenses that may arise such as construction delays and consult with a mortgage broker to see what their finances can afford as this will help determine how much deposit savings should be saved up.
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