lost their shirts when the GFC hit..it’s sign a contract and you’re a dead
duck...get out of the bank loan and you’re still a dead duck...
The Problems With House And Land Packages (Ep183)
http://onproperty.com.au/problems-with-house-and-land-packages/
There are some problems with house and land packages that you should be aware of
before you go ahead and put down your deposit and sign a contract. Failure to be aware of these problems could leave you in a poor financial situation.
Problem
#1 – Paying A Mortgage With No Income Coming In (BANK SCANDAL) Unaffordable Lending
Problem #2 – Inflated Prices
Problem #3, which you should be aware of, is built-in commissions. If you’re purchasing a house and land package through anyone but the developer or anyone but the builder, then there’s going to be extra commissions built into that. Rather than just purchasing, paying for the land and paying for the build, on top of that, on top of the build generally you’re also going to have commissions paid to the people who are marketing and selling that property to you. Now these commissions can often be undisclosed and they can be as little or as much as they want to, it could be as little as a couple thousand dollars, it could be as much as… I’ve seen commissions upwards of $40,000 on different deals (I have even heard of $80,000 commissions). That’s going to the marketer’s pocket, that’s not going to the value of the property and so therefore, chances are that’s going to inflate prices even more. So when dealing with someone selling you a house and land package I do recommend that you ask what commissions are in built, what they’re getting and if they’re not willing to tell you then I would be very cautious about moving forward......
Problem #4 – Housing
Oversupply
Problem
#5 – Competing With Newer Properties
Problem #6 – Not Always A Fixed Price
Problem #7 – You Almost Always End Up Paying More For Upgrades
Problem #8 – Beware The Spruikers
The Problems With Buying Property Off The Plan
http://onproperty.com.au/problems-property-off-the-plan/
Problem #1 is Inflated Prices
Problem #2 – Unsure Of Market Trends
Problem #3 – No Flexibility
Problem #4 – Locked In If the Market Goes Down
Problem #5 – No Opportunity
Problem #6 – Commissions...........Because it’s a new built property, there’s a semi loop-hole where they can actually put these commissions onto the cost of the build itself so you won’t necessarily know exactly what their commissions are, it’s not going to appear in the contract of sale. It could be $5000, it could be $40,000, ........
http://onproperty.com.au/losing-money-on-rental-property/