Foreword
The purchase of off-plan housing and off-plan properties is like gambling in a sense: the deposit is used as an admission ticket, the bet is the house price at the time of purchase, and the difference is obtained after the completion of the property.
However, there are risks in investment and caution is required when entering the market. If you are unable to obtain a mortgage loan, the developer goes bankrupt, or the property quality is low, you will also suffer losses. Some people say that off-plan investment is the field of the brave; but Wanjia hopes that as long as you do your homework, off-plan investment is also your best choice.
These homework include: understanding the developer, understanding the location, understanding the market, understanding the trend, understanding the real estate/understanding the real estate
What is the difference between uncompleted and off-plan
Presale: The term “presale” originated from Hong Kong, and it means that the commercial housing that has not yet been completed is sold to the market during the construction stage (over 25% of completion). Pre-sale commercial housing is also known as uncompleted and off-plan. If the house built by the development company is regarded as the fruit after the construction is completed, the unfinished building that the development company is building can be regarded as the flower of this fruit. This further extends to buying “off-the-shelf”, selling “off-the-shelf”, and speculating on “off-the-shelf”. It is generally called selling pre-sale houses as pre-sale houses, and buying “pre-sale houses” as pre-sale houses. The risks of buying and selling real estate are greater than those of existing buildings!
Off-plan property: Refers to the seller who does not have a ready-to-buy commodity house at the time of purchase, that is, the real estate developer starts from obtaining the pre-sale permit of the commercial house to obtain the real estate title certificate. The commercial house sold is called the off-plan house, and the consumer is buying The pre-sale contract for commercial housing should be signed during off-plan housing; the current housing refers to the commercial housing that consumers can buy at the time of purchase. You can check in immediately and obtain a title certificate.
Purchase and investment risks
For apartment off-plan housing, for local Australians, they can obtain government tax rebates through high depreciation of apartments, and overseas investors do not have income in Australia, so they cannot enjoy the tax rebates brought by high depreciation, but successful immigration and retrospective rights Go to enjoy the tax refund that has not been enjoyed within 5 years.
Later, cashing out is relatively difficult. For villas, apartment houses have a longer stay in the second-hand market, and the cashing value and mortgage value are relatively low. Before the completion of off-plan housing, cashing out is relatively complicated and requires developer approval.
In addition, it is not the type of purchase that Australia’s mainstream rigid housing demand needs, Australian natives still use villas as their autonomy and investment.
Finally, in the case of a poor market, the bank’s evaluation of the local market after the completion of the pre-completed housing will be based on the local market evaluation of the completed housing. Therefore, some banks may evaluate the property at a price lower than the price when the investor bought it.
From the perspective of investing in real estate in Australia, the first is regional selection, and then pay close attention to the median transaction price in this area. In such areas, property prices are reasonable, their appreciation space is higher, and the price/performance ratio is the best. Finally, look at the rental return and vacancy rate data for the area.
Second, there are many major cities in Australia along the coast, so pay attention to prevent irresistible natural disasters, although Australia has less severe weather. The best way to deal with this type of risk is to buy insurance. Investors or owners must pay attention to buying insurance in Australia. Once investing overseas, remember to pay attention to the insurance role of Australian real estate. Foreign insurance rates are very low, but the coverage is very wide. From claims to payment are strictly regulated, and the protection of the rights and interests of insurers is the most important.
Wanjia suggestions
Risk and opportunity coexist. After talking about risk, talk about advantages. Because of the support of national policies and the recent package of plans to revitalize the real estate industry, Australian real estate is increasingly worth investing in and understanding. According to the law, the down payment for buying an Australian property as an off-plan property cannot exceed 10%, and the 10% Australian advance payment for house purchase will be remitted to an Australian property lawyer’s trust account, waiting for final settlement. During the construction period of the purchased Australian property, any deposit will not be remitted to the account of the seller/developer. In an Australian real estate project with a long construction period, the Australian real estate purchase and sale contract usually arranges the Australian real estate deposit paid by the buyer for other investments to provide a certain return. Regarding the attribution of this report, the terms of the Australian real estate purchase and sale contract will specify in detail whether the interest on the investment investment is owned by the buyer or whether it is jointly owned by the Australian property buyer and the seller/developer. Since the deposit of the Australian property before the house has not been paid has not been handed over to the developer, of course there is no risk in this fund.
Wanjia also gave a tip before buying a house at the end
- Entrust a lawyer to review the property sales contract
- Go through the sales and purchase procedures such as building inspection and collection
- Payment through the lawyer trust account or the property agent trust account regulated by the government
These three points will help you make a more stable investment. If necessary, you can also consult Wanjia to give you more comprehensive investment advice and escort your investment.
