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Ph (03) 9600 1111
Fax (03) 9278 8830
Level 9, 365 Queen St
Melbourne, Vic 3000
Australia
Southbank Central
Inspect at
191 CityRoad Southbank
Melway: 1D M6
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News & Editorials
Every week Central Equity writes a number
of news editorials which appear in Melbourne newspapers. This weeks article is posted below.
Click here
to access our archive of news editorials
28/10/00
ASK THE QUESTIONS WHEN BUYING "OFF THE PLAN"
BUYING
RESIDENTIAL PROPERTY "OFF THE PLAN" HAS MANY ADVANTAGES AND IS A WELL-RECEIVED
METHOD OF PURCHASE IN RECENT TIMES IN MELBOURNE AND INTERSTATE. SOME
ADVANTAGES ARE THE LARGE STAMP DUTY SAVINGS, AS WELL AS PAYING ONLY
10% DEPOSIT WITH THE BALANCE OF THE FUNDS NOT DUE UNTIL COMPLETION
OF CONSTRUCTION.
A WORD OF WARNING HOWEVER, WHEN BUYING OFF THE PLAN, PURCHASERS SHOULD
DO THEIR HOMEWORK. ASK QUESTIONS!
THE PURCHASE OF REAL ESTATE IS VERY WELL REGULATED IN VICTORIA AND
DEPOSITS MUST BE PLACED IN SOLICITORS LEGISLATED TRUST ACCOUNTS WHICH
ARE EFFECTIVELY GUARANTEED TO BE SAFE. HOWEVER, PURCHASERS SHOULD
REMAIN CAUTIOUS AND KNOW WHO THEY ARE DEALING WITH AND WHAT THEY ARE
AGREEING TO BEFORE PROCEEDING WITH THE PURCHASE OF A PROPERTY, SIGNING
A CONTRACT AND COMMITTING FUNDS.
THE STAMP DUTY SAVING IS NOT AVAILABLE SIMPLY BECAUSE A PROPERTY IS
PURCHASED OFF THE PLAN. THE MAXIMUM STAMP DUTY SAVING IS ONLY AVAILABLE
WHEN BUYING BRAND NEW 'OFF THE PLAN' BEFORE CONSTRUCTION HAS COMMENCED.
THIS SAVING IS ALSO GREATLY REDUCED IF IT IS A PROPERTY TO BE REFURBISHED
THAT YOU ARE BUYING. IF BUYING AN EXISTING HOME, THEN THE MAXIMUM
STAMP DUTY SAVING IS PAYABLE.
THE STATE REVENUE OFFICE OF VICTORIA AMENDED THE STAMPS ACT IN DECEMBER
1994 SO THAT IF BUYING A REFURBISHED OR REBUILT PROPERTY, THERE WOULD
BE MUCH MORE STAMP DUTY PAYABLE COMPARED TO A BRAND NEW PROPERTY.
YOU SHOULD HOWEVER, CONSULT YOUR SOLICITORS ON THIS.
THERE ARE A NUMBER OF ISSUES TO CONSIDER PRIOR TO PURCHASING A PROPERTY.
FIRSTLY, FIND OUT WHETHER YOU ARE BUYING FROM AN AGENT OR DIRECTLY
FROM A DEVELOPER.
IF YOU ARE BUYING THROUGH A REAL ESTATE AGENT, YOU SHOULD ENQUIRE
AS TO THE AGENT'S EXPERIENCE IN SELLING HOMES OFF THE PLAN. THERE
ARE MANY EXPERIENCED REAL ESTATE AGENTS IN MELBOURNE MANY AGENTS SIMPLY
HAVE THE JOB OF SELLING AND THEY MOVE FROM INDUSTRIAL TO COMMERCIAL
TO RESIDENTIAL PROPERTIES WITHOUT SPECIALISING IN ONE PARTICULAR MARKET.
IN FACT MANY AGENTS MIGHT BE SELLING IN MELBOURNE ONE DAY, SYDNEY
OR QUEENSLAND THE NEXT.
THE DANGER HERE IS THEIR PRODUCT KNOWLEDGE MAY NOT BE AS GOOD AS YOU
WOULD HOPE OR AS CURRENT AS IT SHOULD BE.
IT IS EQUALLY IMPORTANT TO ENQUIRE ABOUT THE DEVELOPER. LOOK AT THE
DEVELOPER'S COMPLETED PROJECTS -- NOT JUST ONE, BUT TWO OR THREE OR
EVEN MORE. ASK FOR THE DEVELOPER'S HISTORY IN TERMS OF YEARS IN THE
PROPERTY INDUSTRY -- IS HE A PROFESSIONAL DEVELOPER OR A RETIRED BUSINESSMAN
SUCH AS A RETAILER OR MANUFACTURER.
DON'T BE FOOLED BY GLOSSY BROCHURES AND FANCY DISPLAY SUITES, THAT
IS NOT WHAT YOU ARE BUYING.
MAKE SURE THE CONTRACT FULLY DISCLOSES ALL CHARGES. LOOK FOR HIDDEN
CHARGES OR ANY WAY IN WHICH THE PRICE YOU ARE PAYING MAY INCREASE,
IN OTHER WORDS, IS EVERYTHING INCLUDED AND IS IT A FIXED PRICE. READ
BETWEEN THE LINES, SO THEY SAY.
MAKE SURE THE CONSTRUCTION OF THE DEVELOPMENT PROCEEDS AND THAT REPUTABLE
BUILDERS ARE USED FOR CONSTRUCTION. YOU DON'T WANT TO HAVE YOUR MONEY
TIED UP AND THEN DISCOVER THE DEVELOPER DOES NOT HAVE THE ABILITY
TO COMPLETE THE DEVELOPMENT DUE TO LACK OF FUNDING OR NOT SOLD ENOUGH
HOMES HAVE BEEN SOLD, OR THAT THE BUILDER CANNOT PERFORM.
THERE ARE A NUMBER OF CASES AROUND MELBOURNE AT PRESENT WHERE DEVELOPMENTS
ARE NOT PROCEEDING OR ARE BEING DELAYED SIGNIFICANTLY FOR THESE SORTS
OF REASONS.
ANOTHER IMPORTANT QUESTION IS HOW LONG HAS THE DEVELOPMENT BEEN ON
THE MARKET. IF IT HAS BEEN AROUND FOR A LONG PERIOD OF TIME, THEN
FURTHER INVESTIGATION MAY BE REQUIRED. IN OTHER WORDS WHY HAS THE
BUILDING BEEN COMPLETED BEFORE ALL THE APPOINTMENTS HAVE BEEN SOLD.
ALSO, REMEMBER THAT IF THE BUILDING IS COMPLETED YOU WILL BE REQUIRED
TO PAY FULL STAMP DUTY.
CONFIDENCE IN THE DEVELOPER IS ESSENTIAL. DEALING WITH AN EXPERIENCED
PERSON OR GROUP, SOMEONE WHO HAS BEEN IN THE BUSINESS FOR A NUMBER
OF YEARS, WILL ASSURE THE PURCHASER THAT OBLIGATIONS WILL BE MET,
PROBLEMS RECTIFIED AND WARRANTIES OBSERVED.
SOMETIMES SYNDICATES ARE FORMED FOR A SINGLE PROJECT. HOWEVER, ONCE
THE DEVELOPMENT IS SOLD, AND THE SYNDICATE DISSOLVES, QUITE OFTEN
THE BUYER IS UNABLE TO LOCATE THOSE RESPONSIBLE WHEN RECTIFICATION
WORK IS NECESSARY.
LOOK FOR AFTER SALES SERVICE HOW WILL IT BE ORGANISED, WHO WILL DO
IT, WHO WILL MANAGE YOUR DEVELOPMENT AND WHO WILL HONOUR YOUR RENTAL
GUARANTEE, IF APPLICABLE.
WHEN BUYING AN APARTMENT OFF THE PLAN IT IS JUST AS IMPORTANT TO BE
ASSURED OF ONGOING LEASING AND MANAGEMENT SERVICES WHICH CAN BE RELIED
UPON.
IF THE DEVELOPER AND THE MANAGEMENT COMPANY ARE THE SAME, NO-ONE WILL
BE ABLE TO DENY LIABILITY FOR YOUR REASONABLE REQUESTS OR BLAME THE
OTHER PARTY.
LASTLY BUT PROBABLY MOST IMPORTANTLY, WHAT IS THE REAL FINANCIAL STRENGTH
OF THE DEVELOPER. ASK THE DEVELOPER TO SHOW YOU HIS BALANCE SHEET.
THIS WILL GIVE YOU A GOOD INDICATION OF THE DEVELOPER¹S STRENGTH AND
ABILITY TO DELIVER THEIR PROMISES.
A PUBLISHED AUDITED BALANCE SHEET IS A VERY RELIABLE DOCUMENT. DON'T
BE SHY IN THIS REGARD. THE DEVELOPER IS ASKING YOU TO SIGN A CONTRACT
AND YOU ARE COMMITTING YOURSELF TO OUTLAYING A LARGE SUM OF MONEY.
THE ABOVE QUESTIONS AND INVESTIGATIONS ARE QUITE REASONABLE. THE PURCHASE
OF A PROPERTY IS A VERY IMPORTANT DECISION, PARTICULARLY WHEN YOU
ARE TRUSTING AN AGENT OR DEVELOPER WITH YOUR "OFF THE PLAN" PROPERTY
PURCHASE. ASK THE QUESTIONS.
CENTRAL EQUITY IS MELBOURNE¹S LEADING DEVELOPER OF INNER CITY APARTMENTS,
AND ALL CENTRAL EQUITY¹S DEVELOPMENTS ARE MANAGED BY ITS WHOLLY OWNED
SUBSIDIARY, MELBOURNE INNER CITY MANAGEMENT (MICM).
CENTRAL EQUITY HAS RECENTLY RELEASED A 26 LEVEL TOWER BUILDING CALLED
THE SUMMIT. THE SUMMIT HOUSES Central Equity¹S NEWEST RANGE OF APARTMENTS
THAT SUITS THE INNER CITY RESIDENTS IN THE 21 ST CENTURY. THE NEW
RANGE IS CALLED ŒCONCIERGE APARTMENT¹.
THE SUMMIT IS LOCATED AT 157 CITY ROAD, SOUTHBANK, FEATURING RESORT
STYLE FACILITIES 20m INDOOR HEATED POOL, FITTED GYM WITH CITY VIEWS.
PURCHASERS HAVE A RANGE OF 1, 2 AND 3 BEDROOM WITH OVER 20 DIFFERENT
FLOOR PLANS TO CHOOSE FROM.
THE SUMMIT WILL MEET THE NEEDS OF BUSY INNER CITY DWELLERS IN THE
21ST CENTURY THROUGH ITS INNOVATIVE CONCIERGE SERVICES AND BROAD BAND
CABLING TAKE ADVANTAGE OF THE EXPLOSION IN INFORMATION TECHNOLOGY.
Central Equity INVITES ALL PURCHASERS TO VISIT THE SUMMIT DISPLAY
ON SITE AND ASK THE QUESTIONS. Central Equity STAFF WILL BE ABLE TO
ASSIST.
DISCLAIMER: EDDIE KUTNER IS A DIRECTOR OF CENTRAL EQUITY.
CENTRAL EQUITY AND ITS SUBSIDIARIES (INCLUDING MELBOURNE INNER MANAGEMENT)
ARE IN THE BUSINESS OF BUILDING AND SELLING RESIDENTIAL ACCOMMODATION,
INCLUDING APARTMENTS, IN MELBOURNE. READERS SHOULD OBTAIN THEIR OWN
INDEPENDENT FINANCIAL AND LEGAL ADVICE.
Click
here
for the archive of Central Equity editorials
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13/10/00
13/10/00
6/10/00
7/07/00
23/06/00
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 for other articles please visit our archive.
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