Why do developers sell off plan property?
Most property developers require finance from their bank to pay for the cost of construction, labor and materials. They will receive better terms if they can demonstrate that a large number of units have already been sold before construction has started. Can I re-sell my off plan property? One of the best tools in the property investor’s tool box is the ability to re-sell before build completion, and walk away with a profit. This is known as ‘flipping’. Flipping is very lucrative and some property investors live from this alone. These are the steps: • You locate, reserve and exchange contracts on an off plan property. • Once you have exchanged contracts – you have legal ownership – so you put it up for sale – for more that you paid, naturally. • You find a buyer who pays you a reservation fee – you learnt this from the developer. • You exchange contracts with your buyer, who pays back your exchange money and more if you are clever. You now have none of your own money in this deal. • On
