Are you having second thoughts about investment property off the plan Melbourne deals due to the various myths and misconceptions surrounding such transactions? Read ahead for better understanding of an off the plan properties Melbourne decision involves. Don’t believe everything you are told about such transactions. Analyze the advantages as well as potential risks of such a transaction before taking a final decision.
One common misconception about investment property off the plan Melbourne decisions is that this transaction involves mere purchase of land. There is a huge difference in purchasing land as compared to purchasing the property. Buying an off the plan property is all about purchasing a property that is it to be constructed. You will be investing money in a project that has been approved and sanctioned by all relevant authorities. Instead of buying the property after it is ready for delivery, you will be purchasing it in advance. This is only difference between off the plan apartments Melbourne deals and standard flat purchase deals. The process of investing in land and generating returns from such an investment is a totally different transaction. Hence, don't make the mistake of confusing purchase of off the plan property with purchase of a plot of land.
Secondly, there are numerous misconceptions surrounding potential rights of the buyer in the event of delayed construction or non-construction of the property. The initial payment made by the investor will not be handed over to the developer. Rather, the money will be deposited in a trust fund that will become payable after the construction is completed. You don’t have to worry about the recovery of money in event of complication in the construction process. You can simply claim breach of contract and recover the money from the trust fund without any difficulty or hassles. Hence, there is zero risk of loss of your deposit in the event of unforeseen complications in the construction process.
Thirdly, it is incorrect to say that you should be eligible for the mortgage loan at the time of payment of the initial deposit. You need to bother about obtaining a mortgage loan only at the time of completion of construction. This means that you will have at least 12 to 36 months before the final payment becomes due. You can consider going in for such an investment even if you have a poor credit score today. You will have adequate time to repair your credit score and become eligible for an affordable mortgage loan.