Is Australian Off-The-Plan Property Investment For You?
Investing in a property in another country is a leap that requires trust and confidence.
Investing in Australian residential property developments from abroad remains a popular choice for many Singaporean residents and Australian expats, but, increasingly these investors are shying away from mass market properties and unit developments in favour of unique, boutique apartments purchased directly from the developers themselves.
Purchasing an off-the-plan property is a great investment choice, provided you have a good partner on the ground to help you to source and finance your investment. With the right assistance, you might find that this option is perfect for your needs. But how to tell if this option is aligned with your investment requirements.
Like most investments, buying off-the-plan comes with its own pros and cons. It has a significantly lower entry cost than other property investment options as it allows you to purchase a property before it’s reached the stage of final development and been approved for occupancy. You benefit from having a brand new, residential townhouse or apartment investment that’s likely to be very competitively priced on the market.
Because you are essentially purchasing an assurance that the property will be developed as outlined by the terms both parties have agreed on, you pay less than you would for a completed residential property. But the payoff to this lower cost is waiting the amount of time required for your investment to mature and start paying you in return. This makes it a poor choice for those who want faster rewards on their investment through a rental or leasing income.
When opting for off-the-plan, there’s also the concern that comes with investing in a different country that is governed by different laws. You’ll need to have done the necessary research on whether or not your investment is in a good growth area of Australia, as well knowing what all your legal requirements involved in purchasing an off-the-plan property are. You will also need a contact to manage the property and liaise with developers on the ground as it moves towards completion.
The best way to get the most of an off-the-plan investment is to partner with business that only deals with this kind of development.
Our team at Wise Guru are based in Singapore but with a presence in Australia. You can get the best of both worlds when making your investment.
Related Tag: Australian Property Investment