Buying Property off the Plan
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Buying a property off the plan may be a good way to get your foot in the door early. You will usually pay about 10 per cent of the purchase price and then pay the rest once the building is finished.
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The plus side is that in a normal real estate market it may be less expensive buying off the plan. The downside is that you must fork out the deposit well before you can move in, you are purchasing an unseen property and then there is the risk that the builder or developer may strike financial difficulties, placing your investment in doubt.
That said, many off-the-plan sales go ahead without a problem as it is a popular way to get a foot in the door. However, before you buy off the plan, investigate what you get for your money. Ask about all the fittings, along with carpets and painting, as they may or may not be included in the price. Also, research the developer and establish their track record by having a look at other properties they have built.
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| Pay the deposit
| Once your offer or bid has been accepted, you need to pay your deposit. This is generally 10 per cent of the price of the property. The most common way of paying the deposit is by cheque, preferably a bank cheque. If you want to pay by personal cheque, talk to the agent first to make sure this is acceptable.
Deposit bonds are another option. A deposit bond is a guarantee that the money will be paid; click here for more information on deposit bonds. Not all vendors will accept deposit bonds, so whether you’re buying through private treaty or at auction, make sure that you check this out beforehand.
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