Buying off the plan is a tempting prospect, especially in a rising market.
You’ll buy at today’s prices with a 10 per cent deposit and then reap the rewards of higher value when construction is finished.
Two types of buyer really benefit from this arrangement. If you’re seeking a new home with lifestyle benefits, it can be a great downsizing option with no major maintenance. For an investor, it can be a way to profit by selling after a capital gain.
Like any purchase, you must do your homework and seek professional advice from your financial adviser, accountant and solicitor. As your local real estate agent, we will be happy to explain the process for buying an off-the-plan property, as well as present any similar opportunities in established buildings.
Here are some tips for you when conducting your research:
- Visit the developer’s website to see their previous work and any on-going projects.
- Ask to visit finished developments.
- Do a general search, especially under the Google news tab, to see if anything controversial comes up.
- Ask online forums about companies involved in the development.
- Ask the selling agent for the builder’s licence number so you can check their credentials online. Watch out for any suspensions, insurance claims, adverse disciplinary findings or prosecutions.
- Consult a solicitor or conveyancer for advice on the contract. Among the key things to look out for include the developer’s right to alter plans (with and without notice), plus strata title and fees.
- Seek an Independent Valuation. As your real estate agent, we’ll be happy to introduce you to an independent expert. Down the track, your lender will also value the property. So you might as well get ahead of the game.
- Check if there are similar construction projects within a 5km radius. The release of a swathe of apartments in your area could risk the value of your investment in the short to medium-term.
Buying off-the-plan can be a fantastic experience. Conducting thorough research will ease any anxieties during the construction phase.
Our experienced agents will be able to step you through the buying process to give you confidence in making your final decision.