The most important thing you need do is thorough due diligence!
Find out all you can about not only the developer, but also the location, ask yourself questions that ensure you keep to your priority list – is the development close to transport, shops, schools, near water for lifestyle? Also, check out the ‘real rental return’ (listen to podcast 2 for more on this).
Research the demographic moving into the area (who will rent my property or who will be my neighbour). Understand the after sales care – what has the developer completed and how well run are the buildings completed?
Then there are the other big questions:
- What has the developer built previously, did they build on time and deliver all they said they would?
- Is the developer fully funded?
- What is the deposit requirement? 20% is the normal – any more than 25% should be questioned.
- Has the developer got their new build 10-year structural warranties in place – ask for a copy.