Sales for apartments off the plan have been booming as of late in the Perth market. Many buyers are tired of high electricity and water rates, don’t want to commute in the Perth traffic and are producing smaller families. This is all contributing to many couples and small families turning to units near the Perth CBD over the traditional 4 X 2 house in the suburbs.
The trend toward CBD units is currently more common in young professionals than any other demographic. According to Hayden Groves, REIWA Fremantle Chairman, increased consumer confidence is enabling strong sales for off the plan units as well as the fact that 29% of units are being bought by first home buyers taking advantage of the $10,000 First Home Owner Grant (FHOG). Mr Groves also attributes the strong showing to record low interest rates.
According to James Limnios, CEO of Limnios Property Group, units have traditionally sold well in “lifestyle areas” near social hubs and within walking distance of infrastructure such as theatres, restaurants, cafes and shopping. Mr Limnios notes that both punters and developers reap multiple benefits from purchasing off the plan units.
Developers can sell units before building them and use the revenue to secure a construction loan if necessary. Punters can buy without paying the full price until the unit is finished. Punters can also have a greater say in how their apartments are decorated when they buy off the plan as opposed to buying after the unit is already built.
Investors who buy early can often see capital growth before completion. Also, units are investment-friendly to those outside of Australia.
A Few Words of Caution
There are some possible pitfalls. First of all, check an area for all planned construction. For example, you can buy a unit that has an ocean view, only to find that by the time it has been built, a larger building has been erected between your unit and the ocean.
Financing can be Tricky
Call us today at Smartline Mortgage Brokers Rockingham. Financing for off the plan units can be difficult to obtain. We have access to credit products from as many as twenty lenders at any given time. Call 0408 912 244 today.
