Now you understand the different types of buyers. We move onto this step in the process which gives you the chance to work one-on-one with an Off the Plan professional. You also have the choice if you are interstate or overseas for buying property through the telephone and email communication. Below we outline both in further detail:
To thoroughly understand the Off the Plan project in detail you ideally need to work with a professional consultant who understands the project specifics.
Typically a one-on-consultation will include the following and more:
Step 4.11: General Goals For the Purchase
This will provide invaluable information for your professional consultant to really understand why you are wanting to buy the property and what you are looking for. Typically this varies between owner occupiers and investors.
Step 4.12: Areas of Interest
You may already have areas you are particularly interested in understanding more about.
Step 4.13: Off the Plan Projects
In this step your consultant will discuss all relevant projects based on your areas or interest.
Step 4.14: Personal Cash flow
A crucial step where your consultant will run you through various cash flow scenarios based on the revenue and expenses of the particular property. If you are buying an investment property this is a perfect time to ask questions relating to forecast rents, body corporate rates (apartments / townhouses), potential holding costs, current vacancy rates and anything else which may help you in understanding the local market.
|End of Year||2016||Yr 1||Yr 5||Yr 10|
|Capital Growth Rate||6%||6%||6%||6%|
|Gross rent / week||$500||$25,480||$29,808||$36,266|
|Pre-tax Cash Flow||-$60,000||-$9,647||-$6,440||-$1,655|
|Depreciation of Building||2.5%||$7,500||$7,500||$7,500|
|Depreciation of Fittings||$36,000||$8,200||$2,693||$790|
|Tax Credit (Single)||$80,000||$9,259||$6,709||$3,829|
|After-tax Cash Flow||-$60,000||-$388||$269||$2,174|
|Pre-tax Equivalent + Per week||38.39%||$7||($5)||(42)|
Step 4.15: Marketing Material
You can now enjoy pictures of the various projects, floor plans, site plans, schedule of finishes and even videos with some projects.
Step 4.16: Research
Your consultant will have detailed research about the area and project. These research reports are very informative in understanding more about the project and area. Key topics included in research reports are the demographics of the area, the local economy, whether new infrastructure projects are underway and how the property market is currently performing.
Sometimes it is not possible to meet face-to-face. In which case we can conduct our consultation through the telephone or skype.
Step 4.21: Telephone
The telephone is a common means of communication for interstate investors. It is particularly useful for matters of urgency.
Step 4.22: Skype
Talking through Skype is a useful resource when going through further information about the Off the Plan project and answering any questions you may have.
Step 4.23: Email
Traditionally a way to forward marketing materials. The email is useful for you to review documents and provide responses.
The selection process occurs once you have reviewed all the relevant information with your personal property consultant.
The next part of buying Off the Plan property is the Exchange process! In this process you will understand the most efficient way to get the property off the market and exchange on a new property.