Answer FAQ's

Q I hear the term 'buying off plan' what does that mean - is it a good idea and is it safe??

Sam, 30 years old Holiday Maker from United Kingdom

A Buying a condo ‘off plan’ means exactly that – purchasing property at today's prices -prior to construction being completed. Often you will get a lower price as sales of units increases as many developers raise the price of the units, this encourages investors to buy early. Most developers are required to secure a number of pre-sales as a condition of bank finance. They may even offer discounts to early purchasers in order to reach their required pre-sale figures. In most cases you pay between 10% - 30% of the purchase price as a deposit and are entering into a contract with the developer. There may be interim payments over construction and the balance is paid upon ‘settlement’ when the building is completed. This can be anywhere from a few months up to two or three years after the initial contract is signed.

Rob Rowcett - Managing Director Compass Real Estate










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