Negotiate an off The Plan Apartment Purchase

kiwibayer on 27/05/2017 - 17:07

Hello fellow OzBargainers,

First-time homebuyer here with a few questions

I'm playing around with the thought of buying am an apartment in Melbourne.
The new apartment block is being built close to where I currently live, I love the area, have been living here for multiple years and definitely do want to live in this area for another 5+ years.
The apartment itself will be ready in 2019, with news about apartment oversupply, I am a bit worried about the future value of the apartment.

This got me thinking:

What options do I have to negotiate the price of an of the shelve apartment?
Is it realistic to negotiate 10%+ off the price they are advertising?
Are there any good ways of negotiating the price for something like this?

thank you for your comments and help

Home & Garden

Comments

  • holdenmg on 27/05/2017 - 17:17

    Run.

  • enzioFirenze on 27/05/2017 - 17:38

    I really don't think you can negotiate a 10% discount, that amounts to 50k for a 500k and is probably pushing it

  • BensonP on 27/05/2017 - 18:11
    +2

    I wouldn't buy an apartment. As you've said, oversupply.

    Also, growth is very slow for apartments, as you don't actually have any land.

    Have you considered a townhouse or unit? The way, you'll at least have a clothesline.

    My partner and I purchased an older townhouse with a concrete courtyard. We've smashed the concrete up and put garden beds, BBQ area and a small amount of turf.

  • ziaxk87 on 27/05/2017 - 18:17

    I am also in same boat.. based on your situation you might want to think about waiting some time more.. check what rates you have to pay.. see if you can find any aprt with lowest rates.. ones without swimming pools or gyms
    in negotiating there is no harm in asking your partner to negotiate for 10%… at least then if they decline you can negotiate as new buyer may be 6-7%

  • [Deactivated] on 27/05/2017 - 18:33

    All depends if the developer can get buyers to pay full price or not. Do you know if people are lining up to buy the apartments like hotcakes? Based on hearing about the apartment market in Melbourne, you might have a chance. I heard its cheaper to buy at reduced prices from the seller after the development is complete. Of course it also about location.
    Also you are buying to live in, rather than investment, so it sounds like your heart is already in it.

  • chumlee on 27/05/2017 - 19:23
    +1

    2018 will be the year the property market (apartments in particular) ends in tears

    • immortalbjr on 31/05/2017 - 08:18

      Tenants give the best property investment advice

  • thechemist on 27/05/2017 - 23:49

    "an of the shelve apartment" sounds kind of fancy. They usually don't like to discount as it would upset people that had purchased already and effect the developers balance sheet (they often have covenants with banks). The may give furniture, Frequent flyer points in lieu of a discount if the project not going so well.

    Lets just say in 5 years you sold it for what you bought it for then would you still do it (only you can answer that)? To live in if it suits your needs/lifestyle it is OK but as an investment not so good and might as well rent.

    But at least you can proudly brag to people that you are a home owner and owning your own place (well technically the bank owns it) is a great feeling

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