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Property group warns of buying off the plan

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Australian Broker | 16 Nov 2016, 07:00 AM Agree 0
New data suggests that off-the-plan apartments could lose up to 15% in value before settlement, putting mortgage holders at risk
  • Jerry | 16 Nov 2016, 09:18 AM Agree 0
    A ridiculous statement, you cannot blanket this entire property type, there are too many factors at play, estimated cost of construction, market cycle, site purchase price etc. I've bought 4 off plan and they have been worth 10-20% more come settlement, that and my gross yields are significantly better than my existing properties.
  • Aaron | 16 Nov 2016, 11:16 AM Agree 0
    It's a "warning", and very timely given the current investment lending landscape. Borrowing is certainly more difficult for investors than it was 12 months ago and a potential valuation below COS adds an extra layer of complexity.
  • Broker | 16 Nov 2016, 12:29 PM Agree 0
    It is very rare for a Valuer to value any off the plan apartment purchase at purchase price , this is going to create major headaches for a lot of ( non cashed up) purchasers with upcoming settlements over the next year or so. Then add into the mix the recent overseas buyers lending restrictions ( in most cases down from 80% LVR to 0% LVR) will see this space get very messy.
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