Cancelled Off the Plan Deals

Discussion in 'Investment Strategy' started by grasshopper, 27th Jan, 2018.

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  1. grasshopper

    grasshopper Member

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    Hey All,

    I am just wondering if you have ever come across canceled off the plan deals. What I am curious about is,
    - where do they advertise "second hand" off the plan apartments before settlement?
    - What are the legal complications?
    - How much loss do the canceling party suffer? What is the achievable discount on these deals?
    - Is this possibly becoming a good deal in Sydney and Melbourne?

    Basically, any thoughts re the secondary market of off-the-plan properties would be appreciated.

    Cheers, Hopper
     
    grasshopper, 27th Jan, 2018
    #1
  2. dabbler

    dabbler Well-Known Member

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    Your not likely to see anything put out by developer/s, you would have to go look and work it out yourself, as developers want to keep the price as high as possible, even if often artificially.
     
    dabbler, 27th Jan, 2018
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  3. grasshopper

    grasshopper Member

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    Hi Dabbler,

    For sure, but can those who want to back out sell instead of breaking the contract? Does that work at all? How and where do they advertise?
     
    grasshopper, 27th Jan, 2018
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  4. See Change

    See Change Well-Known Member

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    They can put the property up for sale through the normal channels .

    I recently met someone who is renting in a new unit in Chatswood . The block had been marketed to OS Chinese , most of who could no longer settle and walked away leaving their deposits behind .

    When they wanted to rent , the developer offered them a 20 % discount to buy .

    I’m not aware of any specific market place , but sometimes people who the developer knows will be offered special deals .

    Cliff
     
    See Change, 27th Jan, 2018
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  5. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    - The usual places

    - Same as buying any property

    - Nothing to hundreds of thousands

    - I doubt it
     
    Terry_w, 27th Jan, 2018
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  6. grasshopper

    grasshopper Member

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    Hi Terry,

    To be honest I started building a website specific to these deals, so just wondering if that makes sense in current environment. What is your view? Cheers, Hopper
     
    grasshopper, 27th Jan, 2018
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  7. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    I have no opinion. I would never buy a strata property myself.
     
    Terry_w, 27th Jan, 2018
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  8. dabbler

    dabbler Well-Known Member

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    Developers would not like that idea, but it wont matter if no one knows about it.

    I am not sure too many people unable or not willing to settle would broadcast it either, it is a failing from all or any party involved, bit different to say a public trustee who may have an obligation to do so, for example.

    Anyway, you could work this out yourself, but putting your OTP buyers hat on and negotiating.
     
    dabbler, 28th Jan, 2018
    #8