Are you considering buying an investment property off plan? There are just too many risks involved in the off the plan sector of the property market. As property prices continue to climb across the nation, reaching or surpassing their pandemic peaks while stock dwindles by the day, I can understand why some investors think it’s…
It’s no secret that I’m not a fan of buying off the plan apartments. For many, many years, I’ve talked openly (and written extensively) about what I believe to be the high risks associated with these types of properties, from an investment point of view. In my opinion, these risks have only become greater since…
You’ve heard me say it before but now the stats prove my point. Off the plan apartments make terrible investments! Analysis by BIS Oxford Economics reports that of the apartments sold off the plan during the past eight years: Two out of three Melbourne apartments have made no price gains, or have lost money upon…
Alarm bells are ringing for those who bought an off the plan apartment a few years ago. Investment bank UBS warned that three in 10 new apartments sold off the plan in Sydney are now settling with a lower valuation than the original contract sale price. And it’s much the same in Melbourne. This comes…
We all know that Sydney has stolen all the property headlines over recent years, but there has been another big news story happening at the same time. What is it? It’s buying off the plan – and buying new units in particular. Our property markets are changing, from one where the Great Australia Dream revolved…
The off-the-plan apartment market in Australia is facing a crisis, as a growing number of buyers who purchased a residential property via off-the-plan contracts are seeking to on-sell prior to settlement. Rising interest rates are making it difficult for buyers to pass the bank’s serviceability test, and some buyers who might have cleared their bank’s…
Alarm bells are ringing for those who bought an off the plan apartment a few years ago. Many investors who bought an apartment off the plan are finding themselves in financial strife as on completion their apartment is now valued considerably below their contract price. Here’s what the figures could look like: When you bought the…
Saying “I told you so” isn’t my style. So, I’m not about to start saying it now. But, I am going to revisit a topic I have touched on many, many times in the past. In fact, I have written extensively over the years about the perils of buying off-the-plan apartments. In my opinion, they…
When it comes to risk, off-the-plan units top the list for potential investment disasters, especially if changes to negative gearing and capital gains tax go ahead. It’s a risk that’s compounded by a number of factors and includes equity risk, cashflow risk and settlement risk. The first, and most obvious, is the risk of oversupply which…
We’re living in a post-property-boom era, in a time when the term ‘off-the-plan’ starts ringing alarm bells. With almost all capital cities suffering from potential unit oversupply, at RiskWise we have compiled a list of the top 100 most risky suburbs across the country. The widespread oversupply issue is universally acknowledged by banks, including the Reserve…
