There are some rarely known benefits to buying land off the plan during the pre-sale phase but few people know what they are. The question is, is buying land off the plan right for you?
Is buying land off the plan right for you?
There are times when land is offered for sale off the plan, or in other words, before it is ready to be built on. This is what is known as a ‘pre-sale’ or ‘off-the-plan’ purchase and is made before land titles have been issued or before construction of the subdivision and roads is complete. Developers sometimes go down this path because the costs involved in developing a new estate are substantial. By holding back the development of the roads until a certain percentage of the land has been sold, the developer can realise a more immediate return on their investment. This is quite common, and there are several reasons you may consider making such a purchase that can work in your favour.
Think about how the following advantages could benefit your family:
- You don’t have to pay for your block until settlement, giving you extra time to save.
- Because you haven’t yet paid for the block, you’ll have no holding costs such as interest payments on a loan.
- You can secure the best block with a minimal deposit and pay no more until settlement.
- Sometimes developers offer incentives, such as rebates or special offers on pre-titled blocks.
- Buying during the pre-sales phase provides an excellent opportunity to negotiate the price, as developers may be highly motivated to sell during this stage.
Buying off-the-plan does require a level of visualisation. If you are buying land this way, ask for a look at the development plan. A development plan takes into account the whole area, not just the estate you are buying in. It will include future lifestyle features, nearby future developments and local infrastructure plans. A land specialist can provide you with all the materials you need.
Avoiding the biggest mistakes made
Buying a block of land based on inaccurate advice can see you blowing a lot more than just your budget. Don’t trust your future to a sales pitch. Learn what you need to know to avoid the biggest mistakes made at Home Build In a Box.