All Topics / Help Needed! / OTP – land with Plan ready for sale

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  • Profile photo of ABAB
    Participant
    @ameetvbhat
    Join Date: 2015
    Post Count: 21

    Hi friends,
    I have been hearing /going through some discussions on off the plan properties with most suggestions here tipping towards steering away from OTP properties. The main problem being as I understand it is the fact that you would tend to overpay.

    I have recently come across an advert that basically has the land advertised with plans (which seems to be fair priced) but gives you the option to build on your own. I quote from the advert :

    “Plans for a xxx bedroom, xxx bathroom, xxx Garage Unit in Prime Location with the option to find your own builder”

    Does this classify as an OTP property ?if I were build on the land with the plans provided my calculations suggest that the property would have good potential to be CF+.

    Any guidance would help.
    Thanks ,
    AB

    Profile photo of Corey BattCorey Batt
    Participant
    @cjaysa
    Join Date: 2012
    Post Count: 1,010

    If the land already has its titles released and can be purchase immediately and there’s no requirement to go through the builder, that’s not OTP. It’s just a land developer showing a house available which can be built on site, many builders do this to drum up business as advertising.

    Corey Batt | Precision Funding
    http://www.precisionfunding.com.au
    Email Me | Phone Me

    Investment Focused Finance Strategist - servicing Australia-wide

    Profile photo of ABAB
    Participant
    @ameetvbhat
    Join Date: 2015
    Post Count: 21

    Thanks Corey! Appreciate the response.

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