Buying a display home can be so enticing. So shiny, so new, so attractive…
But are they good investments?
Of course not.
Developers make money.
House and land packages and off-the-plan developers are in it for profit. That is the whole point of what they are doing. You can’t save money by buying these sorts of properties, because they exist to make the developer rich instead.
What are you paying for?
When you buy a house and land package, you are paying for the house, the land and a whole host of extras.
- The salesperson’s commission
- The cost of printing and distributing glossy brochures.
- The wages of the display home staff.
What about finance?
If you are buying off-the-plan, chances are you may not get finance upon settlement. The lending industry is in an ever tightening state at the moment. It can often take around two to three years to reach settlement from the time you put down a deposit. How can you be sure you will still be eligible for a loan by then?
And if property values drop by this date, you will still be locked into the agreed purchase price – even though the house isn’t worth it.
Banks won’t lend you more than what the property is worth, so you may have to come up with the extra cash yourself.
What makes a good investment?
It can be hard to focus on whether a property is a good investment when you walk through a display home.
They are tailored to make you feel like the deal is a no brainer. You know the property will be brand new. You can see how contemporary and streamlined the layout is. You can see the luxury fittings and fixtures that have been “thrown in” for the same price.
Most people assume that a new and modern space such as this will make money no matter what – but, will it?
Look beyond the luxe features.
Sure, a beautiful property is usually worth more than an ugly one in the same street.
But, whether you will make money on the property also depends on what you paid for it.
Look at the numbers, not the Caesarstone.
The Binvested principles of buying below market value, with a good upside for growth and a strong cashflow are excellent guidelines to follow when considering an investment property.
They put the focus on the numbers and the property’s position in the marketplace, rather than the style features on offer.
If you are investing to build wealth, it doesn’t make sense to buy based on appearance alone. It makes much more sense to buy something that is good value for money, that will go up over the short and long term and deliver a good income.
Become a developer.
What is the point in buying a house and land package? If you are really savvy about your investing, why not become the developer yourself?
Numerous mum and dad investors have been making hundreds of thousands of dollars by buying cheap land and building on it.
Binvested’s group buying power has meant that plenty of ordinary Australians have been making a developer’s profit by cutting out the middle man.
Laugh in the face of the OTP salesman.
Next time you see an OTP spruiker or a glossy brochure, think of all the money that you would be giving them if you signed on the dotted line.
Then, think of all the money you could make if you chose to build on wholesale land through Binvested.
Now, that is a no-brainer!
[button anim=”bounce” alignment=”text-center” color=”btn-primary” size=”btn-lg” type=”btn-border” link=”https://binvested.com.au/bulk-deals-at-wholesale-prices/” target=”_blank” ]Find Out More About Our Bulk Deals[/button]