Buying Off The Plan
Would buying off the plan help you with your portfolio?
If you really want to have a portfolio which you can almost forget, buy units where there are onsite managers. Should you go into this type of investment you can fully hand over the management of the property to the onsite managers who will look after the inside maintenance (should there be any) and you have 100% worry free outside maintenance taken care of.
Another benefit is that if you are buying away from where you live you can use these units for your own use throughout the year. Of course, you would have to be wise with this set up, as you may wish to use the unit during a ‘peak period’ which will cost you big bucks in lack of income. In fact, some management rights have written into their agreements that owners cannot use the units for personal use during the peak holiday seasons because this affects their income as well.
Some investors veer away from this set up because they do not like the idea of a slush fund, but the reality is that even if you own a house you still have to put your hand in your pocket to keep the property up to scratch. On top of that, it most likely that you have to organise the whole exercise yourself – using up your valuable time.
Buying off the plan has several advantages:
- You can put a deposit on a couple of properties which have settlement dates say, 6 months apart.
- You can sell before it is time to settle, so if you are finding that you are strapped for financing the final settlement you can sell it on. In fact, you can even sell it and have it settle the same day as your settlement.
- You have very little upcoming maintenance costs because the properties are new.
Of course the downside to buying off the plan is the guarantee that the property is going to be completed, so make sure you do your research.
Filed Under: Property Investment Tips
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