Buying an Apartment Off-the-Plan – An Eye-Opening Experience Shared with a Friend

buying an apartmentShould you buy an off-the-plan apartment or is it a lot better to just buy something that is already existing? There are quite a number of advantages as well as disadvantages of either systems. There are those who dislike the idea of not being able to see the actual physical property prior to making a decision to purchase. Others simply would like to capitalize on the net savings that they can derive from purchasing a brand new, soon-to-be-completed, real estate property. One example of the latter type of people is my friend, Marie, who decided that buying off-the-plan simply made perfect sense. How it made perfect sense, I have to admit I don’t know.

Well, I have read something about buying off-the-plan properties such as townhouses and apartments before but I clearly wasn’t paying any attention. Nevertheless, Marie asked me if I could help her look for a real estate agent that have off-the-plan apartment projects. Ever the helpful friend, I said I’d help her out.

One of our friends suggested getting in touch with Peter Davies from Chilli RealtyThis common friend of ours said that one of her relatives recently bought an off-the-plan apartment from Chilli. She goes on to share that the people whom her relative met were very helpful enough in determining her needs in order to narrow down her options. Not wanting to spoil the fun of discovery, Marie and I decided to get in touch with Mr. Davies and set up an appointment.

That weekend, we met Mr. Davies at their office in Melbourne. After a few pleasantries we proceeded down to business and the very first thing Mr. Davies did was to ask if we already know anything about buying off-the-plan. We said that we surely would like to learn more.

Peter explained that buying off-the-plan means purchasing a property – an apartment or townhouse – that has not yet been built based on the premise that the development of the area where the property will be located is projected to post substantial growth in the future. This means that clients will have to rely on plans and models in order to have an idea of how the property will look once completed. Peter acknowledged the fact that it is this lack of a real, physical property that puts off some buyers. However, he did reassure us that there are several ways in which this particular concern can be addressed.

Choosing a real estate company that has an excellent reputation for building high quality properties that are at par with global standards of quality construction is one of them. Unfortunately, doing so literally means going through all the different real estate companies in Melbourne and doing research on their individual real estate development projects. To address this, Peter suggested looking for a real estate agency that has a superb track record of partnerships with these real estate development companies. And this is where Chilli Realty can help.

Peter also identified many benefits that can be derived from buying off-the-plan apartments. Since this is my friend’s first time to buy a property, she can enjoy exemptions as well as stamp duty concessions. He added that Marie can also benefit from government grants. For example, buyers of off-the-plan properties in Victoria are entitled to a $10,000 grant for properties that are valued up to $750,000.

Peter went on explain that more and more Australians are opting for off-the-plan apartments as a very good investment. For example, if we are going to buy an off-the-plan apartment now for $600,000 and then sell it for $800,000 after 5 years, then we will be making a nice profit of $200,000. And even if Marie is not going to sell her apartment, she can live in a property right in the middle of a growing community. Peter explained that their real estate development partners study carefully their projects in order to provide the best value for their clients. He added that issues about quality as well as insurance implications are adequately addressed by the Chilli Realty and their respective partners.

After the very informative and truly enlightening discussion, Peter asked us if Marie has already an idea in mind as to what kind of apartment she might be interested in. Marie spelled out her expectations and Peter dutifully noted each one of them. He said that they will narrow down their recommendations based on the needs and requirements of Marie.

In short, Marie felt more confident about getting the apartment of her dreams. Come to think of it, the experience also taught me a thing or two about buying off-the-plan properties. It can be risky but, if you can be assured of the quality provided by both the developer and the agency, then it should really be an excellent choice.

We will be returning to Chilli Realty this weekend to finalize Marie’s contract. I am thinking of following suit.

I hope you’ve learned some helpful ideas from this post of mine. Should you want to read more, just click here.