Buying "off Plan"

[chickencurry]

I read on another website that properties bought "off plan" usually attracted a discount. Is this true and, if so, what kind of discount is usually appropriate?

(Have tried a search on this Forum, but the search facility seems to be down at the moment.)

[quiksilva]

Projects will often have 'early bird' discounts. These vary from project to project but typically in the region of 10%.

[chickencurry]

Oh, OK, so it's not just a case of getting a discount on all "off plan" properties - understood and thanks.

[bangkapiboy]

Sometimes can be even greater discounts, like even a pre-construction discount.

[N47HAN]

alot of developers actually use the "buyers money" to fund their projects as construction progresses. This is why you will obtain a "discount". This is infact a discount based on proposed retail price of the unit after completion of the project.

As a supplier to many projects here i have seen them go for 3m "off plan" during construction raise to 4-6m and on completion of the project they are 9m.

This may sound a great investment but take into account rental return gaurantees ( generally these are loaded to the retail price only to be given back as a rental return generally of around 6%-10% pa over a period of time , normally 3 yrs or so).

If in the current climate this is something you are looking at , make sure to do your homework on the developer b4 you enter into the agreement.

I.E have they completed projects succesfully b4? how much is there paid up capital etc.etc

theyre are some very good deals to be had if choosing the right development , and some major headaches if you get it wrong!

hope this helps