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What are Pre-Sales / Off-Plan Sales?
More commonly referred to as an Off-Plan sale in Australia, a Pre-Sale
represents a pre-construction sale program carried out by a Developer who is
required to sell a certain percentage of units before a lender will commit to
finance construction of the project.
Advantages
People generally buy off-plan as an investment. There is an element of risk
involved and you get a better price to reflect this.
In times of high demand, it may be the only way to get your hands on a hot
property in a sought after area.
Historically, investors have fared well from buying property off-plan. Good
quality new homes can often get re-valued shortly after completion with
surprisingly high gains for the original buyers.
In times of a rising property market, it is perfectly possible to achieve a
significant profit even before a brick has been laid, through an Assignment
sale.
Buying off-plan means that the purchaser often does not have to pay the balance
for quite some time after signing the contracts. For all this time the value of
'their' property could be rising, and they still have not had to sell their
existing home, meaning extra benefit if they can sell later at a higher price.
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