Buying land off the plan
30 Jan 2023
Buying land off the plan with a long settlement date can be a great way to secure a property at today’s prices, but it’s important to weigh the pros and cons before making a decision.
- Price advantage: One of the biggest advantages of buying land off the plan is that you can secure a property at today’s prices, even if the land may not be ready for 2 years in some cases. This can be especially beneficial if property prices are expected to rise in the future.
- Flexibility: Buying land off the plan also gives you more flexibility in terms of the design and layout of your future home. You can work with the developer to customise the plans to suit your needs and tastes in the meantime.
- Potential for profit: It can also be a great investment opportunity. If the land increases in value during the waiting before settlement, you can sell it for a profit. Please ensure that you read the terms carefully as dome developers may restrict you from selling it externally.
- Risk of project delays: One of the biggest risks of buying land off the plan is that the project may be delayed for a variety of reasons, such as zoning issues, lack of funding, or weather. This can push back the settlement date and cause you to miss out on other investment opportunities.
- Risk of price changes: Buying land off the plan also increases the risk of price changes due to market fluctuations. If property prices fall before settlement, you may end up losing money on the deal.
- Risk of changes in personal situation: Buying land off the plan also increases the risk of changes in your personal situation. Your financial situation, family situation, job location or any other circumstances may change and make it difficult for you to settle.
In conclusion, buying land off the plan with a long settlement date can be a great way to secure a property at today’s prices. However, it’s important to consider the potential risks and to have a clear plan in place before making the purchase. It’s also important to consult a lawyer and a financial advisor to ensure that you understand the terms of the contract and the potential risks of this kind of investment. Additionally, it’s important to be prepared for the possibility of market fluctuation and changes in personal situation during the waiting period.