Should you buy an off-the-plan apartment in Newcastle?
Like anything, buying off-the-plan is something that has pros and cons – but at the moment there is a lot of hype about all the new developments in Newcastle and it’s something our team is getting a lot of questions about.
We don’t have a straight yes or no answer, because we always discuss the specific needs and wants of our clients with them. Newcastle is certainly a hot spot for property at the moment, particularly for the CBD apartments.
However, as Kylie and Dale mention, often there can be better value in existing properties and a lot less unknowns and risks.
As a Sydney Morning Herald article stated:
“One of the most common problems is a blow-out in the time between putting down the 10 per cent deposit and completion. The original 18 months to two years can easily stretch to three or four years.
In that time, lenders may have tightened their lending criteria and interest rates may rise.
And, when the lender does the valuation on the finished apartment or town-house or house, it could be less than the purchase price.”
And a Newcastle Herald article discussed (among other things), some of the benefits:
“Buying off the plan can be a good strategy for downsizers and upsizers who want to secure a property now and still have the luxury of time to sell their existing property.
That provides the buyer certainty in terms of where they will be living now and in the future.
In an ideal world, they should be able to sit back for 12 months and gain more value on their existing property and also pick up a gain on the off-the-plan purchase, if estimated values lift there as well. But the world is not always ideal. Property is subject to peaks and troughs in terms of popularity and value.”
We’re more than happy to have a chat with you about your property purchase ideas and we can give you some great insight into the Newcastle property market so that you can get the best value for your money. Please get in touch to learn more.
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