The Pro’s and Con’s of Buying Off the Plan

Maximise audio quality

• Please ensure your speakers are on, volume is up and not on mute.

• You can test your audio in the control panel of theGo To Meeting software, under audio preferences.

• If you can’t hear us yet, please ensure your speakers are on and turned up.

• TURN OFF: Outlook, Skype, online back-ups and any music orvideo downloads.

• Faster internet = better quality audio.

Dennis Wong

• Product & Training Manager.

• Property investor for the past 10 years.

• Great amount of industry experience.

Material contained in this presentation is an overview only. It should notbe considered as a comprehensive statement on any matter nor reliedupon as such.

This presentation contains general information only and does not take intoaccount your personal objectives, financial situation or needs and youshould consider whether the information is appropriate to you beforeacting on it.

Before acting on any information you should consider seeking advice froma financial adviser and your accountant before making any financialdecision in relation to any matters discussed in this presentation.

General advice disclaimer

We help investors

build and manage

their property portfolios

• Guided and mentored thousandsof clients to plan and purchaseproperty since 2006

• Helped clients build wealththrough properties

• Provides superior real estateinformation

• Assisted clients reduce debt andretire early

• Over 260,000 members

Real Estate Investar

ASX listed, data and research based company providing industry-leading:

• Online property investment software

• Strategy and advisory services

• Invested heavily to be data driven

• Operate according to strict public governance

Real Estate Investar

In partnership with…

Poll: When are you purchasing your next property?

Poll: Have you considered off-the-plan property?

What is Off-the-Plan Property?

A property that is available for sale before construction begins.

• Apartments, townhouses & houses.

• Different to House & Land.

Off-the-Plan Vs House & Land

Off-the Plan

• 1 contract that includes both the house & land components.

• You become the owner at the end of the construction process & settle in a single day.

House & Land

• 2 contracts – 1 for the land & 1 for the house.

• Buy & settle on the land first; loan is taken out on the land only.

• 2nd loan is then taken out (construction loan) & builder is engaged tobuild the home. Payments are made in stages as the build progresses.

• You own the land at the beginning of the process.

Off-the-Plan Vs House & Land

House & Land – Full turn key

Some builders may not include everything you would expect.

• Vertical blinds

• Ceiling Fans

• Driveway

• Shelving

• Eaves

• Mirrors

• Fencing

• Clothesline

• Tiles & Carpet

• Landscaping

• Letterbox

• Vanities, tapware & toilet suites

• Bathroom exhaust fans

• Air-conditioners

• Light fixtures

• Security screens

Pro’s of Buying Off-the-Plan

• Low Initial Capital Outlay (10% deposit)

• Brand New

• Lower Maintenance Costs

• Buying at today’s prices

• Build equity without incurring any loan payments

• Warranties

Pro’s of Buying Off-the-Plan

• Modern Living

• More attractive to tenants

• Customisation may be available

• Depreciation

• Government Incentives

• First Home Owners Grant

• Stamp Duty Concessions

Pro’s of Buying Off-the-Plan

Government Incentives

• QLD

• $15,000 or $20,000 grant for first home owners (value less than$750,000).

• NSW

• $10,000 grant for building new home up to $750,000 & buying newhome up to $600,000.

• Stamp Duty abolished on all homes up to $650,000; stamp dutyrelief for homes up to $800,000 for first home buyers.

Con’s of Buying Off-the-Plan

• Can’t see the end product

• Additional fees for extras (driveways, landscaping, fencing etc.)

• Sunset Clauses / Delays

• Developer goes bankrupt

• Higher Strata Fees

Con’s of Buying Off-the-Plan

• Increasing Interest Rates

• Financing

• No Uniqueness / Individuality

• Property / Market Value Decreases

Where to buy?

• Close to jobs, transport, cafes, schools, universities, entertainment etc.

• Increasing populations.

• Low vacancy rates.

• Limited supply of land.

• Is it too close to a major road, highway or train track?

• Is it too close to industrial properties?

Where to buy?

Where to buy?

Where to buy?

Infrastructure – Local Council

Infrastructure – State Government

http://www.statedevelopment.qld.gov.au

Infrastructure – State Government

http://www.planning.vic.gov.au

Infrastructure – Federal Government

http://infrastructureaustralia.gov.au

Infrastructure – Federal Government

Research – Love the numbers, not the property

• Average Days on Market – Sales & Rental

• Vacancy Rates

• Median Price – Listing & Sold

• No. of Auctions

• Clearance Rates

• Level of Discounting

• Comparable Sales

• Low, median & high price ranges

• Sales History

• Listing History

Research – Love the numbers, not the property

Research – Love the numbers, not the property

Research – Love the numbers, not the property

• Jellis Craig - Fitzroy: 9 sales with average of 22 days

• Nelson Alexander – Fitzroy: 21 sales with average of 30 days

• Peter Markovic Real Estate: 2 sales with average of 26 days

Research – Love the numbers, not the property

• Hocking Stuart – Brunswick: 10 rentals with average of 18 days

• Nelson Alexander – Carlton: 6 rentals with average of 11 days

• Nelson Alexander – Fitzroy: 26 rentals with average of 25 days

Sales Brochures

Sales Brochures

Sales Brochures

Sales Brochures

Property Analyser – 10 year forecasts

Property Analyser – 10 year forecasts

Property Analyser – 10 year forecasts

Property Analyser – 10 year forecasts

Property Analyser – 10 year forecasts

Property Analyser – 10 year forecasts

Property Analyser – 10 year forecasts

Development Search – Free Membership

Development Search – Pro Membership

Development Search

Development Search

Development Search

Are you ready to take action?

Option 1: For Hands Off Investors

Premium Membership

• Complete end to end solution to help you purchase profitable investment property

• Team of industry experts working for you

• Achieve the outcome without the stress or hassle

Option 2: For DIY Investors

Pro Membership

Sign Up at – www.realestateinvestar.com.au

$149 per month

No minimum term

Access to Pricefinder included

Access to Xero Accounting

Month to Month membership

100% tax deductible

Poll: Would you like…

Premium Membership: Strategy Session

OR

Pro Membership: 1-on-1 Demo

Get your FREE tickets at –

https://info.realestateinvestar.com.au/events

http://info.realestateinvestar.com.au/2017-property-investing-survey

Questions?

Register for a personalised 1-on-1 demo -

https://info.realestateinvestar.com.au/1-on-1-demo

OR

Sign up at - www.realestateinvestar.com.au

Book a free strategy session –

https://info.realestateinvestar.com.au/premium-

membership