Why do we say things like “the early bird gets the worm?” Or “first in best dressed?” . Why do highly intelligent people sleep on a pavement overnight to save $500 on a fridge or big TV at a Boxing Day sale? How are people able to sell tickets to great events for vastly inflated prices? The reality is that the early bird does get the worm, those first in are best dressed, etc.
The same principle applies to property….those who choose first will outperform those who choose last. Those choices are 9 times out of 10 made off plan before the site goes to the open market. There are other advantages to an off plan purchase too as well as disadvantages of course, however for me getting that worm is the most significant advantage by a long shot. Choose first!
What comes to market as completed stock is generally what people didn’t want. By choosing first, you are putting yourself in the position to be best dressed. It should allow you the opportunity to de-risk your purchase significantly, allow you to attract the best tenants and as importantly, allow you to sell it eventually to an owner occupier who wants to purchase the best of the bunch. Is there a better exit strategy?
Sadly the best and the worst decisions are made off plan so it is imperative you work with a team you can trust. Every developer I know “is the best” so it is advisable to have someone trustworthy evaluate their offerings. Choose a company that has been around a while and been through bare and bull markets, a company being guided by genuine research and a company with a successful track record. This is one of the most critical decision one can make so if the trade off to choose first is a bit of a wait, I am here to tell you the wait is worthwhile.
Take care out there