Knowing where to begin can be confusing and everyone seems to have an opinion as to what should be your first step onto the property ladder. The first question you need to ask yourself, what is my long term goal?
This may appear on the surface to be an unusual question, and yes I realise you want to buy a property, but your future goals determines what type of property best suits your needs.
For instance, if you are young and think in a few years’ time you would probably want to sell this property and use the proceeds as a deposit for a family home then purchasing an apartment off the plan may not be your best option. Off the plan apartments need to be held for 5-10 years as a minimum after the completion of the build otherwise you will be competing with brand new, never been lived in, apartments for the same price when you try and sell it.
Large developments are built in stages and can take 2-5 years to complete the building process requiring a realistic hold of 10-15 years. You would be better to purchase an existing apartment/unit or small home that requires work, then renovate as you can afford whilst you are living there, as it would generate a better return for your money when sold in less than 10 years.
‘If you want to purchase a property to live in for a year or two, or as an investment only, then use the equity in the property as part of a deposit for your next home and keep the original property as an investment then an off the plan apartment may be suitable. For this plan the potential rental return, or return on investment (ROI), will be the determining factor in the buying process.’
It is important to understand your future goals to ensure you are buying the right type of property. Buying a home with purpose and a plan instead of emotion ensures that when it is time to move into the next phase of your life you are in a strong position.