Australia’s property market continues to show stable increases, which offers great opportunities for growth. This is the reason the appeal of new Brisbane apartments to investors is showing no sign of decline, with new figures highlighting the number of buyers of off the plan projects that rose by 154% in only three years.
Several reports have revealed that approximately 1,463 apartments worth $814 million were sold in the city for just the third quarter of fiscal 2015. Compared to the first quarter, sales have increased by around 19%. Buying an off-the-plan scheme can be a lucrative investment if you know the ins and outs.
The Trick to Securing an Off the Plan
Many investors prefer to buy off the plan because the value of the finished property can be worth more than the purchase price. As time goes on, prices often go up. To enjoy steady, high ROI, however, it’s important to know how off the plan works and what strategies to have.
As Resort Brokers Australia explains, “Those looking to purchase ‘off the plan’ management rights are encouraged to ‘do their homework’ as these businesses are sold largely based on projections. The expected net profit will be based on projected letting pool numbers and rental appraisals. It is also important to get a feel for the caretaking duties.”
At the moment, Brisbane has the highest number of off the plan projects. This, however, has prompted concerns on supply raised by developers, buyers and industry consultants.
The Supply Debate
Oversupply of apartments has been a controversial topic in Australia recently. According to analysis, though, Brisbane is not going to have issues when it comes to supply of new apartments. Given the current demand and sales figures, the availability of properties in the city remains undersupplied.
When considering buying off the plan schemes, it’s essential to have a detailed plan that explains the benefits and risks. Buyers should know why exactly they are buying to avoid confusion and regrets.