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[On-Demand Webinar] The Pro's and Con's of Buying off the Plan

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In this webinar we look at the pros and cons of buying off the plan investment property

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[On-Demand Webinar] The Pro's and Con's of Buying off the Plan

  1. 1. The Pro’s and Con’s of Buying Off the Plan
  2. 2. Maximise audio quality • Please ensure your speakers are on, volume is up and not on mute. • You can test your audio in the control panel of the Go To Meeting software, under audio preferences. • If you can’t hear us yet, please ensure your speakers are on and turned up. • TURN OFF: Outlook, Skype, online back-ups and any music or video downloads. • Faster internet = better quality audio.
  3. 3. Dennis Wong • Product & Training Manager. • Property investor for the past 10 years. • Great amount of industry experience.
  4. 4. Material contained in this presentation is an overview only. It should not be considered as a comprehensive statement on any matter nor relied upon as such. This presentation contains general information only and does not take into account your personal objectives, financial situation or needs and you should consider whether the information is appropriate to you before acting on it. Before acting on any information you should consider seeking advice from a financial adviser and your accountant before making any financial decision in relation to any matters discussed in this presentation. General advice disclaimer
  5. 5. We help investors build and manage their property portfolios
  6. 6. • Guided and mentored thousands of clients to plan and purchase property since 2006 • Helped clients build wealth through properties • Provides superior real estate information • Assisted clients reduce debt and retire early • Over 260,000 members Real Estate Investar
  7. 7. ASX listed, data and research based company providing industry-leading: • Online property investment software • Strategy and advisory services • Invested heavily to be data driven • Operate according to strict public governance Real Estate Investar
  8. 8. In partnership with…
  9. 9. Poll: When are you purchasing your next property?
  10. 10. Poll: Have you considered off-the-plan property?
  11. 11. What is Off-the-Plan Property? A property that is available for sale before construction begins. • Apartments, townhouses & houses. • Different to House & Land.
  12. 12. Off-the-Plan Vs House & Land Off-the Plan • 1 contract that includes both the house & land components. • You become the owner at the end of the construction process & settle in a single day. House & Land • 2 contracts – 1 for the land & 1 for the house. • Buy & settle on the land first; loan is taken out on the land only. • 2nd loan is then taken out (construction loan) & builder is engaged to build the home. Payments are made in stages as the build progresses. • You own the land at the beginning of the process.
  13. 13. Off-the-Plan Vs House & Land House & Land – Full turn key Some builders may not include everything you would expect. • Vertical blinds • Ceiling Fans • Driveway • Shelving • Eaves • Mirrors • Fencing • Clothesline • Tiles & Carpet • Landscaping • Letterbox • Vanities, tapware & toilet suites • Bathroom exhaust fans • Air-conditioners • Light fixtures • Security screens
  14. 14. Pro’s of Buying Off-the-Plan • Low Initial Capital Outlay (10% deposit) • Brand New • Lower Maintenance Costs • Buying at today’s prices • Build equity without incurring any loan payments • Warranties
  15. 15. Pro’s of Buying Off-the-Plan • Modern Living • More attractive to tenants • Customisation may be available • Depreciation • Government Incentives • First Home Owners Grant • Stamp Duty Concessions
  16. 16. Pro’s of Buying Off-the-Plan Government Incentives • QLD • $15,000 or $20,000 grant for first home owners (value less than $750,000). • NSW • $10,000 grant for building new home up to $750,000 & buying new home up to $600,000. • Stamp Duty abolished on all homes up to $650,000; stamp duty relief for homes up to $800,000 for first home buyers.
  17. 17. Con’s of Buying Off-the-Plan • Can’t see the end product • Additional fees for extras (driveways, landscaping, fencing etc.) • Sunset Clauses / Delays • Developer goes bankrupt • Higher Strata Fees
  18. 18. Con’s of Buying Off-the-Plan • Increasing Interest Rates • Financing • No Uniqueness / Individuality • Property / Market Value Decreases
  19. 19. Where to buy? • Close to jobs, transport, cafes, schools, universities, entertainment etc. • Increasing populations. • Low vacancy rates. • Limited supply of land. • Is it too close to a major road, highway or train track? • Is it too close to industrial properties?
  20. 20. Where to buy?
  21. 21. Where to buy?
  22. 22. Where to buy?
  23. 23. Infrastructure – Local Council
  24. 24. Infrastructure – State Government http://www.statedevelopment.qld.gov.au
  25. 25. Infrastructure – State Government http://www.planning.vic.gov.au
  26. 26. Infrastructure – Federal Government http://infrastructureaustralia.gov.au
  27. 27. Infrastructure – Federal Government
  28. 28. Research – Love the numbers, not the property • Average Days on Market – Sales & Rental • Vacancy Rates • Median Price – Listing & Sold • No. of Auctions • Clearance Rates • Level of Discounting • Comparable Sales • Low, median & high price ranges • Sales History • Listing History
  29. 29. Research – Love the numbers, not the property
  30. 30. Research – Love the numbers, not the property
  31. 31. Research – Love the numbers, not the property • Jellis Craig - Fitzroy: 9 sales with average of 22 days • Nelson Alexander – Fitzroy: 21 sales with average of 30 days • Peter Markovic Real Estate: 2 sales with average of 26 days
  32. 32. Research – Love the numbers, not the property • Hocking Stuart – Brunswick: 10 rentals with average of 18 days • Nelson Alexander – Carlton: 6 rentals with average of 11 days • Nelson Alexander – Fitzroy: 26 rentals with average of 25 days
  33. 33. Sales Brochures
  34. 34. Sales Brochures
  35. 35. Sales Brochures
  36. 36. Sales Brochures
  37. 37. Property Analyser – 10 year forecasts
  38. 38. Property Analyser – 10 year forecasts
  39. 39. Property Analyser – 10 year forecasts
  40. 40. Property Analyser – 10 year forecasts
  41. 41. Property Analyser – 10 year forecasts
  42. 42. Property Analyser – 10 year forecasts
  43. 43. Property Analyser – 10 year forecasts
  44. 44. Development Search – Free Membership
  45. 45. Development Search – Pro Membership
  46. 46. Development Search
  47. 47. Development Search
  48. 48. Development Search
  49. 49. Are you ready to take action?
  50. 50. Option 1: For Hands Off Investors
  51. 51. Premium Membership • Complete end to end solution to help you purchase profitable investment property • Team of industry experts working for you • Achieve the outcome without the stress or hassle
  52. 52. Option 2: For DIY Investors
  53. 53. Pro Membership Sign Up at – www.realestateinvestar.com.au  $149 per month  No minimum term  Access to Pricefinder included  Access to Xero Accounting  Month to Month membership  100% tax deductible
  54. 54. Poll: Would you like… Premium Membership: Strategy Session OR Pro Membership: 1-on-1 Demo
  55. 55. Get your FREE tickets at – https://info.realestateinvestar.com.au/events
  56. 56. http://info.realestateinvestar.com.au/2017-property-investing-survey
  57. 57. Questions? Register for a personalised 1-on-1 demo - https://info.realestateinvestar.com.au/1-on-1-demo OR Sign up at - www.realestateinvestar.com.au Book a free strategy session – https://info.realestateinvestar.com.au/premium- membership

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