Buying from a developer - negotiating power?

Discussion in 'Investment Strategy' started by Gockie, 18th Sep, 2017.

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  1. Gockie

    Gockie Life is good ☺️ Premium Member

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    Hi,
    A friend wants to buy from a developer in Brisbane. It's in the suburbs, however i'm not yet sure if it's a house, townhouse or (hopefully not) an apartment.

    What tips would you have for the best price if buying from a developer? Let's assume the sales demand isn't super hot; let's say it's warm.

    On the map it theoretically doesn't seem like a bad spot to buy (I haven't checked any flood maps though) and I haven't actually seen this location mentioned on any threads.

    Of course, she would be paying the developer's margin and the land component would be lower than if it was an existing property, but at least there's deprecation....
    Edit: It's a villa.
     
    Last edited: 18th Sep, 2017
  2. tobe

    tobe Well-Known Member

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    Not much. Negotiating power that is. The developer has done their sums. They have a price point that ensures their ROI. That may or may not be the marketed price. There may be some giveaways, furniture oacjages, rent guarantees, price 'discounts' to entice buyers who want to 'negotiate'.

    But unless the developer is in financial trouble, there's not really any power to negotiate.
     
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  3. D.T.

    D.T. Specialist Property Manager Business Member

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    None I'd say, there'll be other buyers.
     
  4. MTR

    MTR Well-Known Member

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    Discount is generally built in if buying OTP, buyers pay more for completed product

    Also, stamp duty discount applies as per stage of the development. RE agent can determine $ value via developer

    Make sure they check out specifications, perhaps some room to negotiate upgrades
     
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