Truth: 2013, 2014 & 2015 were exceptional years in ‘property terms’ (even more exceptional for those on train line suburbs), where the current status of the market is ‘it’s back to normal’….Many say they cannot afford to buy in this current market, fact is everyone, YOU CANNOT AFFORD TO NOT BUY. Every single day we are asked ‘what’s the property market doing now’? Here’s the answer…..solid, moderate, capital growth.
Of late we have spoken often about ‘off the plan’ purchases & this advice has purely been offered & as a result of a stream of successful investments. In my opinion, investing in ‘off the plan property’ is a complete no brainer & I have mentioned previously, that I am such a believer, I have & will continue to invest in this style of property – I AM A HUGE ADVOCATE.
In my 22 year Real Estate career, I don’t think I have seen a bad example of buying ‘off the plan’ LOCALLY…
Please bare in mind, property is not speculative like the stock market. It is long term.
Where else can you lock in the potential of two years capital growth with NO MONTHLY REPAYMENTS FOR TWO YEARS?
I would like to share with you a REAL life buyer, who purchased a REAL ‘off the plan’ property….(names have been changed for confidentiality reasons).
Property: 22 Sturdee Pde, Dee Why (Oceana complex)
We launched this property to the open market & to VIP clients of Novak Properties exclusively at a launch night, some two years ago now.
- 26 properties were purchased as a result of the evening.
- Our client purchased a 1 bedroom apartment, 50sqm (internally), 14sqm balcony + a car space of approx. 15sqm
- The total of the apartment was purchased for $550,000 in November 2014 at our ‘VIP Launch Evening’.
- Market value TODAY is easily between $650,000 – $700,000
- THAT IS APPROX. $100,000 IN CAPITAL GROWTH WITH SETTLMENT ONLY SCHEDULED FOR JULY/AUGUST OF THIS YEAR!!!
- 10% deposit was paid upon exchange ($55,000)
- No further payments have been made, nor will be made until settlement (July/August 2016), when the additional $495,000 will be payable to the developer.
- We are estimating the rental return for this property will be $550-$580/week
- Depreciation on this style of property alone in the first year will be $12,000
- Government grants applied, in this case these customers were not first home buyers, so they get $5000 in their bank account (it’s more if you are a first home buyer)
- They have made to date $100,000 in capital growth
- SETTLMENT IS SCHEDULED FOR JULY/AUGUST OF THIS YEAR!
A huge tip…
- At this stage it is quite hard for a developer to get every unit priced perfectly allowing market feedback
- STAGE 1: This is the first option for you to buy. Generally developers WILL DISCOUNT HEAVILY because they are securitising sales in the building to get funding to build & proceed with excavation & building.
- Selling methods in development sites are generally done in stages.
- This is a great opportunity to buy low!!!!! & allows the savvy investor to select the absolute premium apartments in the building.
- STAGE 2: This is where the developer will adjust pricings across all units giving the interest level & sentiment on every single unit in the building.
- Most prices go up across all units, some more than others, depending on the sales rates and floor plan, and market feedback. Still a very good time to buy as it’s still early on in the project.
- STAGE 3: Excavation starts on the project as 50% of the project is now sold out. Prices go up on the individual units again and there is a flurry of interest from purchases as they see a real property proceeding to be built and it is actually all starting to happen.
- STAGE 4: Half way through building, the project is now 75% sold out. Prices increase on the individual units again
- STAGE 5: The building is now completed and the last 10% of the units are sold at premium rates as buyers can actually walk through the apartment and see exactly what they are going to get. The developer likes this and often holds back 10% – 20% of their apartments. Buyers like this because they don’t need to use their imagination. They see something tangible.
Stop procrastinating, it’s costing you money! Lock in the potential of two years capital growth with NO MONTHLY REPAYMENTS FOR TWO YEARS….
Please call me personally 0421 111 111 or any one of my sales team & we will walk you through this one step at a time…..
All the very best of success to you….