depends on the location
The trouble with buying off plan in the past was the hype that surrounded the property and the locations.
Buying off plan can still work if there is a clear exit. Buying to flip still works if the property is in a good location with a high demand.
The problem i have always seen in the past is the expectations of buyers.
If you put money in a bank CD or a IRS you expect a retun on your investment over a period of time. sometime 1 year or 2.
In 2 years time you get your money out of the bank and paossibly you will have made between 4 - 6% as a return on your investment.
This same theroy seems to be lost on people when it comes to Real estate. People are led to believe they can make 25% - 59% inside 1 - 2 years.
Thats all well and good but for such a high return there is a high risk, but buyers dont seem to want to look at the risk. People assume they will get a huge ROI but they will not run the risk of losing or just getting back only 6%
Another issue is that people are taken in by clains of 25 - 50 % ROI but fail to understand that 20% of the money given to them is taken back in mortgage payments or property fees or rental fees.
There are still some opportunities for Off Plan investment you just have to look around and tread carefully and do the Math. Peel back the layers.
I would not ever making a sweeping statement that something is better than something else. Check the numbers and look at your true exit.
Just food for thought.......
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