Buying Off The Plan Industrial?

Why buying off the plan industrial strata titled property is a bad investment.

We aren’t a fan of buying off the plan industrial units because,

• when buying off the plan, you are buying a promise, and the reality often doesn’t live up to the expectations

• most developers will maximise the sale price, so there isn’t any upside value in the property you buy once complete

• there is a risk of oversupply of industrial units on completion which could mean your property is worth less when you settle on the property

• there is a risk the valuation does not stack up when it comes time to settle, meaning you need to tip in more equity when it comes time to settle

• often the market rents quoted are over-stated meaning it takes longer to lease up the property and / or actual achieved rents are lower then promised

Look, you might get lucky. You might buy at today’s prices and if the market goes up, you might settle on a property that’s worth more when you settle it, but for us, the upside doesn’t outweigh the risks. 

If you are interested in investing in commercial property, either as a pure investment or for your business to occupy, simply email us at [email protected] and we’ll be in touch.

Just remember, this is not intended to be financial advice and any comments or opinions are general in nature. We recommend you seek independent legal, taxation and financial advice before making a significant investment decision.