Extracted from 8:47AM Friday Mar 14, 2014 Fairfax Media (Domain)- Susan Wellings
When property prices are rising, it's the perfect time to consider buying off the plan, says one of the leading project marketing experts in new developments. It means both owner-occupiers and investors are locking in a purchase at today's prices for a home that, by the time it's built in two to four years, will hopefully be worth a great deal more.
"That's a wonderful opportunity to enjoy capital growth', says David Milton, the Managing Director of Residential Projects at CBRE. "Most owner-occupiers will be selling their own homes which gives them plenty of time to sell, and a lot more chance to earn more capital growth in the interim on their own home, while having put down just 10 per cent to secure their next.
Investors, too, will reap the benefits as they'll receive a better rental return because of that high predicted capital growth of between 10 per cent and 20 per cent." Buying off the plan, particularly when there's a shortage of good property for sale on the market, also gives the potential purchaser the chance to snap up something of real quality, especially if they get in early and can choose the pick of the product on offer.