Property

For many people, buying property off the plan has been a deal just too good to refuse. The prospect of literally getting in on the ground floor has the attractions of buying at a cheaper price and hopefully making a good capital gain before you move in.

That’s how it’s meant to work. But the Australian property market is now being flooded with home units bought off the plan which buyers are walking away from and failing to settle.

They are simply forfeiting their deposit because they either can’t get finance to settle or the value of the property has dropped more than the deposit. It’s the least financially painful option.

The problem is going to get worse as more 3-4 year off-the-plan developments come to completion and more stock comes on to the market.

Most capital cities have pockets of high rise over supply but in places like the Gold and Sunshine Coasts it is nothing short of devastating. In these places there is 4-5 years worth of stock on the market right now and will take years to get back to normal.