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TPC Gold | Buying Off the Plan? What to Know Before You Sign

This snippet is from one of our previous episodes: Is Now The Right Time to Buy a High Rise Apartment? 

Buying off the plan can seem like an exciting—and convenient—way to secure your next investment property… but is it as safe as it sounds? 

In this TPC Gold snippet, Bryce and Ben unpack what every investor really needs to know before signing on the dotted line for off the plan apartments. 

Because while not all developments are dodgy, the risks are very real—and the consequences can be financially devastating. 

In this episode, you’ll learn: 

  • Why not all off the plan apartments are equal (and what separates the good from the risky) 
  • The key questions to ask about developers, builders, and architects 
  • Why company structures matter (and how they’re used to dodge accountability) 
  • The hidden costs of ownership—like inflated body corporate fees and low sinking funds 
  • How to push for buyer protections like price guarantees and valuation clauses 

The result? A better understanding of what makes for a sound off the plan investment—and what to avoid at all costs. 

Want to Protect Your Next Purchase?

Before you sign anything, do your homework.  

Better yet, let us help. Our team at Empower Wealth offers qualified property planning and buyer’s agent services to help you avoid common traps and invest with confidence. 

__________________

If You Enjoyed TPC Gold | Buying Off the Plan? What to Know Before You Sign, You Might Also Like:


Transcript

Bryce Holdaway 
Here’s some of the research that people need to be thinking about if they do want to buy some of these buildings. Because I think the important point to consider here… you talked about it (and) you touched on it already, not all buildings are rubbish.  

Ben Kingsley
No, the vast majority are fine. 

Bryce Holdaway
That’s right. So we’re talking about the outliers, but it’s a confidence issue with these outliers that are coming up. But a couple of things… When you are wanting to buy something like this, you’ve got to investigate the design and the documentation. So the best thing to do is find out who is actually going to build this particular property and not only that, have they got a track record? And have they done anything before and has it stood the test of time? Because the basics of business are that two entities can make decisions; a human being can make a decision. A trust can’t make a decision, but a company can. But what that does is it affords them legal protections that you need to be aware of. Don’t be naive to that. So if you are buying from a company that has a solo company that doesn’t have any trading history and they’ve got a history of jumping… just be aware that there’s very little protection if something happens. You talked about it before. So make sure you know who you’re dealing with and go and have a look at some of the projects they’ve done in the past, and maybe just have a chat to some of the people that have been involved in some of the projects in the past because they should be prepared to tell you.  

Ben Kingsley
I agree, Bryce. I mean, the thing for me is like, if I was looking at it, normally if it’s off the plan, they’re going to say “architecturally designed by X”. Right. Well, what’s the first thing I’m going to do? I’m going to go to that architecture (firm). I’m going to go to their website and it should have a series of all of the projects and developments that they’ve done, that they’ve been involved in, some of the awards that they’ve won. If I don’t have any of that and it’s a Legoland building, then I mean, you know what we feel about those buildings. They are shocking investments. They are terrible. It is just mass-produced rubbish. So if you’re ever going to be looking at what makes for a building that could get capital growth… If the architect’s an award-winning architect and it’s quite unique.  

Bryce Holdaway
It needs some uniqueness about it. 

Ben Kingsley
Yup, owner-occupier appeal built all around that.  

Bryce Holdaway
Because we get people writing to us and say, you guys are so anti off-the-plan. Well, because 99% of it we are. And we are the first to admit there are some exceptions. Absolutely there are some exceptions.  

Ben Kingsley
So the developer can sometimes be a public company. How are they going? How are their profits? Are they building in that company name or have they set up a silo company in the event of issues? Now we have seen Canberra has also been experiencing some fast builds for profit and the challenge with those guys… one of them made good. So it was a national company and it was an eight-million-dollar remediation work that needed to be done. So the challenge with that was they came good. So that’s what you want. Like, all right, we’ve made a mistake here. Our builders have done it or whatever. That’s the big bit. So remember… you get the architecture, the plans and you look at the builder and you look at the developer. Have they got a proven track record? Is everyone happy with that? You get through that stage and that’s the first thing.  

Bryce Holdaway
The second thing, Ben, is to realise that after you’ve moved in… everything’s shiny, the carpet smells great, the taps are looking awesome (but) what are the ongoing costs to live in these properties? Because you can have a fully paid off apartment Ben, and be paying costs that still make you feel like you’ve got a mortgage. Because one of the things as an investor, I always say to people that if you’re buying something that has got a body corporate involved (whether it’s a townhouse or whether it’s an apartment or whatever), always look for the rent return after body corporate spend so that you get some parity of comparison.  Because you might have something in the same street around the same price getting the same rent, but the rental yield back to you can be really significantly different because one has got an exorbitant body corporate or on the positive side you might have one of the body corporates that are actually being proactive (and) they’ve thought 10 years in advance. They’ve actually got a capital works program and they’ve put it in place so that they start to build up some of that sinking fund so that they don’t have to go back to the owners later and say: oh look, we need to do some maintenance on the building. So there’s this balancing act too because what happens is if I’m an owner and I’ve been contributing to that sinking fund, as soon as I sell it I’ve got no access to that, it’s an asset of the building. It’s not an asset to you even though you’ve been contributing to it. 

Ben Kingsley
Correct. 

Bryce Holdaway
So it’s a delicate act of making sure you get the optimum there.  

Ben Kingsley
Mate, well summarized. The next one we want to look at is in terms of the guarantees, right? So you mentioned it earlier around what’s involved in that process. And I think it’s when I’m sitting down and if I’m thinking I’m going to buy something off the plan… it’s like what insurance policy are you going to give me? What is the builder’s warranty? Are the developers willing to give me more confidence around that? I’d even be arguing in these current times, you could potentially even get a guarantee in your negotiations for buying… price guarantee. So in other words, if I buy this today and it doesn’t stack up in terms of a bank valuation in 18 months’ time, will I be able to void my contract? If they are supremely confident, then they should do that right? I’ve been advocating that for a long time. I don’t like the idea that someone pays $680,000 for an apartment and then at completion it values up at $600,000. There’s $80,000 in paper losses. I don’t think that’s fair and reasonable. And the buyer at the moment is in a position of strength. There’s a lot of supply of apartments out there. If you want to win my business, then ultimately you know, these are the types of negotiations that we can do. 

 

TPC Gold | Property Due Diligence: What to Know Before Buying an Existing Unit

This snippet is from one of our previous episodes: Is Now The Right Time to Buy a High Rise Apartment? 

When it comes to buying an existing apartment or unit, doing the right due diligence can save you from years of costly surprises. 

In this TPC Gold snippet, Bryce and Ben break down the must-do checks every buyer should know before purchasing a strata or medium-density property.  

From digging into the body corporate minutes to having quiet chats with the neighbours, they share the practical (and often overlooked) steps that separate a smart buyer from a regretful one. 

If you’re buying into a building, you’re buying into a community—and sometimes that community has stories you won’t find in the contract. – Bryce” 

Whether you’re a first-home buyer, upgrading, or planning your forever home, this is a must-listen if you’re considering purchasing an existing property. 

Want Help Finding Your Dream Home—Without the Guesswork?

Due to popular demand, our sister company Empower Wealth has recently launched a brand-new Owner-Occupier Buyers Agent division. 

Where our existing Buyers Agents have helped thousands of investors find the right property to build wealth, this new division is specifically designed for everyday Australians looking to find their dream home. 

So—why engage a Buyers Agent when buying your home? 

Clarity and confidence: Cut through the overwhelm with guidance tailored to your exact needs and lifestyle.
Save time and stress: Let a seasoned professional handle the search, shortlist, inspections, and negotiations.
Avoid costly mistakes: With experience across different property types, our agents know what to look for—and what to avoid.
Access off-market opportunities: Get access to homes that never even hit the open market.
Emotional balance: Stay objective in one of life’s biggest decisions with a calm, strategic expert by your side. 

Book a free consultation with one of our Buyers Agents today and take the stress out of your next home purchase! 

__________________

If You Enjoyed TPC Gold | Property Due Diligence: What to Know Before Buying an Existing Unit, You Might Also Like:


Transcript

Ben Kingsley
So what’s the DD, what’s the due diligence we need to do, Bryce? What’s the number one thing?  

Bryce Holdaway
Number one due diligence is you go and have a look at the past track record of body corporate minutes, because what does that tell you? You’ve got a community of people coming together saying the body corporate’s got a responsibility for X, Y and Z and if there’s something wrong with the building they’re going to let you know, or if there’s something wrong with a defect or a person who’s living there or something that is affecting the peaceful enjoyment of that community, it is usually going to be in those minutes. And I would go back as many as you can possibly get your hands on, minimum two, but it’d be nice to see three, so you can see if there’s anything back in the past where there might have been an issue. Now I’ve got a beware on that Ben, because based on what we’ve been talking about today, would there be an incentive Ben for… 

Ben Kingsley
…the body corporate not to disclose, Bryce? 

Bryce Holdaway
Correct.  

Ben Kingsley
Yes. 

Bryce Holdaway
Because what’s one of the biggest challenges that you’re going to have with the current issue around the crisis is people protecting the value of their asset. And how do they protect the value of their asset? They have an off-record chat, Ben, about some issues that they do not put on the minutes because they know this is what the diligent people will do. But first of all, that’s what I would do, Ben. Notwithstanding there’s an issue.  

And secondly, I talked about it before, but do you have a body corporate that is proactive about realising that a building will need some maintenance done? And are they going to be reactive or proactive? And reactive means that they will just deal with stuff as it happens versus people who go: Hey here’s our 10-year maintenance plan. Here’s that divided by 10; here’s that divided by the 18, the 16, the 12, the 8 owners. Here’s your contribution each year, so that you make that. Have they got a sinking fund balance for a rainy day? 

Ben Kingsley
A healthy sinking fund balance is a good sign of a couple of things, Bryce; a well-built building as well. Because if they haven’t had to do anything with it, and I’ll give you a good example. Where was I? I was in Brisbane, and I was looking for an apartment for a client of ours and I came across this one in about six kilometres out of Brisbane and I went and had a look at it and I thought, okay, it’s really well-priced, good floor plan. I did notice a couple of cracks, so I’m like, okay. So everyone goes, well, can you still get a building and pest inspection on the building? I go, yes, you can. And you can even get them on high rises.  

Now, some building and pest inspectors will say there’s a limited scope in terms of the external work they do, especially if it’s 20 or 30 stories, they’re not gonna be able to get up on a scaffold and go and have a look at it. But they can still do the underground car parks, they can still do that, because most stuff comes from the foundation and works up. So in this particular case, I got a building and pest inspection done and I was like, oh, a couple of cracks there I’d like an engineer to have a look at. As soon as he said that, I said, no, no, don’t even worry about it. As soon as you say that I’m out. That’s it, I’m moving on to the next block because you can pay $400, $500, $600 and you get that and all of sudden it’s like, okay, if that’s worse than I thought it was because it’s structural in an area… I don’t even need to engage in an engineer; I’m not gonna buy that for my client. It’s like, next property please. Even though I thought it was a good buy, I’m moving on.  

Bryce Holdaway
That’s what we call self-selection, Ben.  

Ben Kingsley
I don’t need to spend a few grand to have the engineer tell me what’s wrong with it.  

Bryce Holdaway
Yeah, so there you go folks. And the last one is, I apply this particular one, Ben, even if it’s a house, if it’s a townhouse… I go and talk to the neighbours.  

Ben Kingsley
Yeah.  

Bryce Holdaway
Because they are only too willing to tell you.  

Ben Kingsley
Well, it comes back to that story about whether the body corporate is fully disclosing right? So if you are buying into a medium density; again, owner occupiers could be listening to this saying: I do want to live here and that is the price point to get me into that suburb and there are lots of apartments with 30 or 40 apartments in them now, so go and door knock. You know how they’ve still got the security that you can’t get through the front door? Just door stop them. I’ve done it before, my door stop is: Oh excuse me do you live here? 

Bryce Holdaway
But what happens if you’re not a Collingwood supporter…?  

Ben Kingsley
There’s a nice way of doing it, and here’s the approach. It is as simple as: Oh hi. Because what they do is: Oh do you need to get in? And it’s like: No actually, I’m interested in apartment number 31. But I would love to have a chat with you. Do you own or rent here?  

Bryce Holdaway
“Ohhh, you’re buying the one that Jessie’s divorcing in, eh?” 

Ben Kingsley
Thank you, tick; nice bit of information. “Oh lovely couple, didn’t know what happened there.” Especially the old folk who have been in the building forever. Some of them ask you up for a cup of tea. “Would you like to come up and have a look at my place as well? Are you a buyers agent? Oh you can probably value it, what is my property worth?” You get the whole thing right. And “are you on the body corp? Oh you’re on the body corp? What’s happening?” Oh it’s just unbelievable. I would stop three or four people to get the information that I need to get to. 

Bryce Holdaway
That could cause a crisis Ben because people are wondering if they’re gonna buy this they might get stopped by you for a little chat and they might not buy anymore, so yeah. 

 

536 | CGT Mistakes, Busting Mortgages & More: The Top 5 Property Questions on the Internet!

Are apartments REALLY a good investment? 🏡💰 

Property vs Shares – which one builds wealth faster? 📈 

What are the smartest strategies to pay off your mortgage sooner? 💸

Folks, in today’s supercharged Q&A session, we’re answering: 

The top 5 property and finance questions on the internet!    

From the essentials you need to know about capital gains tax to understanding how banks assess your borrowing power, we’re covering the most searched (and often misunderstood!) topics in property, finance, and money management. 


Here’s what we cover…

✅ The hidden pros & cons of apartments vs houses

✅ The real battle between property & shares

✅ Mortgage hacks that actually work

✅ Capital Gains Tax explained – how to reduce it, and much more! 

Tune in now for expert insights, real strategies, and insider knowledge that could change your financial future! 


Free Stuff  

  • TEASER: New Exciting Features Coming to Moorr!
    Big things are happening in Moorr, our lifestyle finance app designed to help you manage your money, track surplus, and achieve your financial goals.

    Here’s what’s coming…

    • My Knowledge Section – We’re migrating all our rich insights, free reports, and courses into a new, improved knowledge hub. Soon, everything you need will be in one place!
    • Next Date Feature – A powerful new reminder tool that goes beyond bill tracking. Use it for your goal-setting, to-dos, and key financial dates to stay ahead.
    • Mobile Insights Upgrade – All the rich data from our web app will now be available on mobile, making it even easier to track and manage your finances on the go. Check it out now!
  • WAITLIST: Bryce’s 50th Charity Event
    Be part of Bryce’s special 50th charity celebration in Bali! In collaboration with the John Fawcett Foundation, this one-off event is designed to provide life-changing eye surgeries to those in need. Join the waitlist or donate today to support essential medical assistance.
  • COMING SOON: “How to Retire on $3k Per Week”
    Join the waitlist for your new playbook for passive property investing. Our third book is a complete accumulation of our life’s work and teachings. You’ll get a special discount code PLUS first access to all our bonuses. Sign up now!
  • Want to have your burning property questions answered instantly? Try our podcast companion!
    Our TPC Podcast Companion is your go-to tool for property, finance, and money management insights—available 24/7 on WhatsApp. Try it now! Opti QR Code

 

Timestamps  

  • 0:00 – CGT Mistakes, Busting Mortgages & More: The Top 5 Property Questions on the Internet! 
  • 1:09 – Entering our 11th year and how to have YOUR questions answered instantly 
  • 4:33 – Life-changing updates coming to Moorr…  
  • 6:38 – COMING SOON: “How to Retire on $3k Per Week” 
  • 8:35 – Mindset Minute: Time is the only currency you spend without knowing your balance… 
  • 8:51 – How to support Bryce’s life-changing charity event dedicated to giving eyesight back to those in need  
  • 10:27 – Q1) Are apartments a good investment? 
  • 11:40 – Unpacking history performance  
  • 14:53 – Our tiers for property investing 
  • 15:46 – When it DOES & DOESN’T make sense 
  • 17:36 – Final Verdict  
  • 20:04 – The pros and cons of investing in apartments 
  • 21:29 – Q2) Which is better: Investment Property vs. Shares
  • 23:29 – Ask yourself THESE questions before deciding 
  • 24:30 – Key considerations for investors 
  • 25:07 – $50G vs $12G return: The answer depends on 1 key factor 
  • 28:27 – Why shares work for some!   
  • 29:29 – Final Verdict  
  • 30:10 – Q3) How to pay off your mortgage quickly? 
  • 30:23 – The key crux to slash years off your home loan!  
  • 32:14 – More practical strategies  
  • 32:38 – First-hand experience: How Ben paid down his first property 
  • 33:48 – Beware of THESE risks & misconceptions!  
  • 34:51 – Why putting money into your offset is the fastest strategy  
  • 37:25 – Your basic and advanced loan-smashing strategies  
  • 40:03 – Q4) What do you need to know about investment property & capital gains tax? 
  • 42:22 – How CGT is calculated  
  • 43:36 – Simple ways to reduce your tax bill 
  • 44:08 – Why tax planning is critical & how to consolidate your records  
  • 46:51 – Final CGT tips and professional advice  
  • 47:24 – Q5) How do lenders calculate serviceability? 
  • 47:38 – Serviceability EXPLAINED 
  • 50:19 – Why does it matter?  
  • 52:16 – What is APRA’s 3% buffer?  
  • 54:26 – What lenders really look at when calculating your serviceability 
  • 56:19 – Easy ways to improve your borrowing power 

And… 

 

How To Pick The Right Investment Property: “Know Thy Quadrant…”

So, what makes for the RIGHT investment property… and how do you pick it?

Well, let’s be honest… most of us can’t tick all the boxes on our property wish-list. We’d like to, sure, but often this isn’t an accurate depiction of reality. We can’t all afford the best house in the best street in a blue-chip, capital-growth-centric location every time we invest in property! So, chances are you’ve had, or will have, a conversation about what you might have to compromise in the buying process.

… And this is where our “Buyer’s Decision Quadrant” comes in!

This is a framework that can help you with the asset selection process and help you make an informed decision so you are NOT compromising where it matters most. Because there is something that is absolutely non-negotiable.

So in today’s episode, we’re going to take a deep dive on the four areas — the “Quadrants”  — of our Buyer’s Decision Quadrant so you can sleep well knowing you’ve picked the right investment property with the money you have and the ambitions you seek!

Listen now to learn how to pick the right investment property by using our Buyer’s Decision Quadrant to weigh up the “wins” and “loses” of what you compromise on!

Don’t forget, get further insights and “play along at home” by picking up a FREE physical copy of our book here: http://www.thearmchairguide.com.au/

 

Here’s a bit of what we cover in today’s episode…

  • What is “The Buyers Decision Quadrant” and how can you use it to purchase your next investment property?
  • What is The One Thing you should NEVER compromise on?
  • Should you buy “Smaller, Closer In” OR “Bigger, Further Out?”
  • What can you compromise on if you have a smaller budget?
  • How to recognise which investment property will work for your own circumstances…
  • Is a property that “ticks all boxes” – AKA the perfect property – really a myth?
  • Is “Uglier” always better?
  • Land size considerations…
  • What should you quickly overlook?

 

Free Resources

  • Free Book – The Armchair Guide To Property Investing: How to Retire on $2,000 A Week (please just pay for postage – we’ll pay for the book and send it anywhere in Australia for you.)
  • The Property Couch PodcastThe Insider’s Guide to Property Finance and Money Management (This is Australia’s #1 Property Podcast with over 307+ episodes that features HEAPS of simple and actionable frameworks, countless interviews with the best minds in the Australian property and finance industry and a ridiculous number of free resources to help you at any stage of the property investment journey)

 

Episodes from The Property Couch to Further Support You…

  

The #1 Reason Why These Properties Soar In Value… While Others DON’T!

Not all properties are created equal. And there is a specific reason for this – what we like to call “The Psychology Behind The Price”. And this has EVERYTHING to do with human interest and human behaviour – something that can indeed be measured and, almost always, stays exactly the same… no matter who you are or where you live.

Here’s the deal… there are two “types” of properties – Investment Grade and Investment Stock. And most investors are often tricked into thinking – or falsely assume – that what they think is a good investment is going to turn out to be, well, a good investment. And this is NOT the case. In fact, it’s often the complete opposite.

This may come as a surprise to you… but the greatest investments – what we call “investment grade” properties – actually target the owner-occupier (that is, the home owner)… NOT the investor!

And in today’s episode we’re going to tell you exactly why this is and give you the science behind what makes for an Investment Grade property and how to recognise one using the golden rule that underpins the value of propertySupply and Demand!

Listen now to learn how to get a return on your investment property and keep it… simply by identifying high demand in the property market.

 

Remember…

Investment Grade = Great.

Investment Stock = No good.

 

Don’t forget, get further insights and “play along at home” by picking up a FREE physical copy of our book here: http://www.thearmchairguide.com.au/

 

Here’s a bit of what we cover in today’s episode…

  • What types of properties almost always outperform others?
  • What do we mean by “Supply and Demand” and how can property investors use this to get a return on investment?
  • Investment Grade vs Investment Stock
  • What is “Owner-Occupier Appeal”?
  • How To Identify REAL High Demand in The Property Market!
  • Critical Supply Considerations and How to Identify “Scarcity” in the market
  • The Three Biggies: Human Behaviour, Human Interest and Economic Activity
  • What Property Indicators should property investors assess?
  • Why does the Demographic of a property market have such an impact on property prices?
  • What areas will grow most in value?
  • What is gentrification?
  • Tips for Investing in Apartments

 

Free Resources

  • Free Book – The Armchair Guide To Property Investing: How to Retire on $2,000 A Week (please just pay for postage – we’ll pay for the book and send it anywhere in Australia for you.)
  • The Property Couch PodcastThe Insider’s Guide to Property Finance and Money Management (This is Australia’s #1 Property Podcast with over 307+ episodes that features HEAPS of simple and actionable frameworks, countless interviews with the best minds in the Australian property and finance industry and a ridiculous number of free resources to help you at any stage of the property investment journey)

 

 Episodes from The Property Couch to Further Support You…

 

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