My fellow investors, again DO NOT invest in offplan where you are required to Bank - roll a developers adventure, and ignore Bank guarantees - they probably wont bail you out when a developer goes pop.
Superior Worldwide just went bust, for example, having taken tens of thousands from each buyer during the build phase. They were a large well established developer. Since going bust the Directors have more or less vanished and trying to get a refund will be very difficult if not impossible.
My advice is only buy a fully completed property as so many developers worldwide are on the brink.
You almost certainly will not make any profit during the build phase, so the risk / reward scales are tipped strongly in favour of only buying built property.
You will always find keenly priced fully built property as some that reserved are unable to come up with completion monies.
Furthermore, if you buy completed property you know exactly what your'e getting.
Did you know it is common for developers to frame thier new projects as having Golf, yet often the golf course is not delivered but they get out of this by pointing you to the contract which sure enough doesn't even mention golf! You could be told that the 'golf' angle was only an aim.
Furthermore, when you buy offplan it is usualy impossible to pin down the management and maintenance costs. Polaris world owners are finding these costs to be quite a bit higher than they had been told, so much so that the rents do not even cover those costs - some investment!
If a developer claims to be secure and robust, then they should be able to fully build a property before asking for any substantial monies.
Superior Worldwide just went bust, for example, having taken tens of thousands from each buyer during the build phase. They were a large well established developer. Since going bust the Directors have more or less vanished and trying to get a refund will be very difficult if not impossible.
My advice is only buy a fully completed property as so many developers worldwide are on the brink.
You almost certainly will not make any profit during the build phase, so the risk / reward scales are tipped strongly in favour of only buying built property.
You will always find keenly priced fully built property as some that reserved are unable to come up with completion monies.
Furthermore, if you buy completed property you know exactly what your'e getting.
Did you know it is common for developers to frame thier new projects as having Golf, yet often the golf course is not delivered but they get out of this by pointing you to the contract which sure enough doesn't even mention golf! You could be told that the 'golf' angle was only an aim.
Furthermore, when you buy offplan it is usualy impossible to pin down the management and maintenance costs. Polaris world owners are finding these costs to be quite a bit higher than they had been told, so much so that the rents do not even cover those costs - some investment!
If a developer claims to be secure and robust, then they should be able to fully build a property before asking for any substantial monies.
