Buying residential property off the plan can have risks.
No commercial transaction is risk free. The best you can achieve is to minimise the risk in each transaction by carrying out thorough due diligence and getting sound advice.
This is smart risk management which should be done before you even think of signing any contract with a developer to buy a property.
Consider the following –
If there is an oversupply in a market then values and rental return will decrease.
You must not rely on the developer, his sales team or the real estate agent. Do your own research. If you feel that is a task you prefer a professional to do on your behalf – then engage that professional.
Contact the local council they can provide information to assist you in your research. Councils will provide information such as a list of the pending developments. This way you can gauge the level of supply in a market and the demand for a type of property that you are considering buying.
Do your research or have a firm like ours do it for you. A little time and care will save you a great deal of anxiety and money in the worse case scenario.