Buying of the plan ready for 2019

candlelarbra5212 on 19/02/2017 - 19:39

Hi guys,

I live in Canberra and am thinking of buying a 2 bedroom 2 bathroom + study + 2 tandem car spots unit for $420000. It's being built by Empire Global in South Quay it's called Jardin.

I've asked about fees like body corporate and rates about $3500 p.a. and this way I get a $7000 first home buyers grant and $20 stamp duty.

I know there's always horror stories about off the plan and please share especially if you have delt with this builder. Also please share any good stories.

I have a $40000 deposit ready to go and because I'm getting in early it's a great price for the current market. Top floor woth views.

I also understand that the housing market is hot and in 3 years may look totally different but who knows. There's lots of people saying wait but really it's never a perfect time to buy. I remember three years ago people were saying there's about to be a crash or interest rates will rise but I have very stable employment and see this as a long term investment with it being positively geared and using the capital to offset a bigger mortgage for a house after living in it for a few years.

I'm 24 atm and want to get on the property ladder ASAP but in no rush to owner occupy immediately.

Let me know any thoughts or better options. Cheers guys

Home & Garden

Comments

  • Skramit on 19/02/2017 - 20:23

    Like buying any apartment off the plan, expect actual value of your apartment to have a large correction after you move in. That's the only problem with off the plan properties, the values can change dramatically (up or down) after they are built.

    If you plan to keep the place long term 10+ years then this shouldn't be a problem.

  • djkelly69 on 19/02/2017 - 20:31

    I live in Tuggeranong but would not be looking to buy an apartment down here. I looked at some of the other units in Greenway as investments, but I really think there is way too many units around there compared to realistic demand for living in that area. I would be looking closer to the city.

    You may be happy living there for now but what will rental demand/prices be like in 5 years' time when all of the units around there are finished and you want to rent it out?

    This is something you will have to weigh up for yourself, but that is my opinion.

    As for the developer, I would strongly recommend trying to have a look at other developments done by them and doing your research. (Not that I have heard anything bad about these guys in particular, just a good idea for any developer.)

    I am not sure what the 'proposed' body corporate levies are for these, but I think when you add up body corporate, general rates and water rates, you are likely looking at around $4,000-$4,500 per annum. Plus whatever it increases by in the next 2-3 years it takes to build them, plus land tax, property manager fees, etc, once you are renting it out.

    • candlelarbra5212 on 19/02/2017 - 20:39

      Yeah the rental price is an issue but I'm not sure closer to the city will be any different and I definitely think the units there, although quite a few, pale in comparison to molongolo and gungahlin. Plus with close public service buildings I'm thinking the yields may not take such a big hit. I could definitely be wrong but that's my thought process at the moment.

  • Marcsie on 19/02/2017 - 21:44

    $20 Stamp duty ???

    • djkelly69 on 19/02/2017 - 22:45

      In the ACT, first homebuyers buying a brand new house/unit under $468k (at present) only pay $20 duty. Then partial duty on a sliding scale to $590k, and full duty above that.

      NSW has something similar as well - exempt from duty under $550k, sliding scale to $650k, then full duty above that.

      Must be for principal place of residence and a few other conditions.

      • candlelarbra5212 on 19/02/2017 - 22:49

        Yes it's called concessional stamp duty and it's a pretty big pull to a new build

  • boomramada on 20/02/2017 - 10:41

    Key to buying off the plan is good conveyancer, I'm yet to find a good one.
    2 bedroom 2 bathroom + study + 2 tandem car spots unit for $420K is ok, but I would stay away from 3.5K per year body corporate.
    But you can buy a 400k townhouse with 1k body corporate in Gungahlin at the moment.
    You only want to buy in Tuggeranong, if you like to live and work near there.
    Specially you buying it from Tuggeranong not near Canberra.

    Edit, check builders history :)

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