Buying off-the-plan property is to save on stamp duty, getting the best lot and so on.
Questions
1) I noticed that there is no fix time line for the developer to complete the project, should there be one?2) I read in an article about 5% deposit is required only but I noticed most developer is asking for 10% deposit – is that right? e.g. Mirvac’s case
I hope those active invester could share some insight on the above.
Thanks[blink]
Hi
There is usually a sunset clause in the contract. If the building is not complete by this date, either party can usually pull out without penalty. You can use it to your advantage, but so can developers – many have delayed the construction process so they could pull out of the contract and resell at higher prices.
As for deposits, you can try and do some negotiating to get this down.
Also be careful, now may not be the ideal time for buying off hte plan if the market stays flat.
Terryw
Discover Home Loans
Parramatta
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the Dolphin Apartments in Mandurah is an example… developer just cancelled 20 contracts there. Investors tied up 10% cash deposits for 2 years, only for the depsotis to be returned with not as much as a thanks mate. tough times on all sides.
http://www.megapropertygroup.comINVESTMENT SALES * RENTAL SOLUTIONS * STRATA MANAGEMENT
I could not find any date of completion and according to the developer – they have yet to finalise the date. Can they do that?
10% Deposit in Queensland = Unconditional Contract This is why they ask for that amount. The completion date will no doubt be finalised. They obviously haven’t achieved the right amount of pre-sales for their bank to fund the project if they haven’t set one yet.
As for the Developer pulling out I heard about that one and it was the Funder who pulled out due to costs rising above their comfort level. They then gave the order to “trash the contracts” which equates to Game Over Player One…
Stuart Milne
Non-Conforming Specialist
READY Mortgages
http://www.readymortgages.com.au
[email protected]
Mob: 0404 056 055Hi,
In any project management process, every tasks must have a timeline. As for this case, developer cannot take forever to decide when to fix the delivery date. The money put the trusts does not grow and is losing buying power daily and nobody benefited. All the saving in stamp duty is lost, isn’t it?
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