Are you thinking of purchasing "Off the plan" property?
'off the plan' purchases are quite popular as people buy apartments or retirement village homes that are not yet completely built. There are advantages & disadvantages of purchasing "Off the plan" property.
Advantages of purchasing 'Off the plan' property
- Government grants and exemptions may be applicable on brand new properties.
- The purchaser secures a brand new property at a given price that will hopefully grow in value over while it's being built.
- The purchaser usually does not need the entire price of the property and is usually able to secure the property by paying 5 to 10% deposit.
- The remainder of the price in only payable at settlement when the proeperty is completed.
Disadvantages and risks of purchasing 'Off the plan' property
- The property is not exactly what you were expecting i.e. the property is bigger/smaller/different to what you though it would be.
- The builder does not complete the property at the time you expected
- You don't like the property when it's finished
Checklist for 'Off the plan' property purchasers
- Check the builder's/developer's reputation. Ask the builder for their previous projects and try to speak to people who have purchased from the builder previously. These days online research can greatly help.
- Check details such as size of the property & every room, ceiling height, balconies, parking (if any parking spaces are part of the purchase), storage, special connections such as TV & internet, materials such as carpets, tiles, kitchen & bathroom fittings etc. Also establish how much change can the builder/developer make to the property i.e. from the plan plans that you have received?
- Visit the actual location of the property to ensure you're satisfied with possibility of future developments affecting your property.
- Check the Sunset Clause or the Sunset Date - which is the amount of time that the builder/developer have to complete the project and what happens extra time is required?
- Check if the plans have council approval.
- Check how much the proposed strata levies are and any strata management arrangements such as maintenance.
We provide complete solution to our clients purchasing "off the plan" properties.