What you need to know before buying off the plan
Buying off the plan can be a very attractive affair, especially with stamp duty savings, you agree to pay a fixed price for the property which by the time of completion may go up, etc etc.
Having said that below is a must to do checklist before getting into a signed contract to ensure a smooth transaction.
Below is a checklist of points to consider when you find a property you like.
Compare the measurements of the display with what’s actually on the plan.
Make sure the contract specifies which appliances will go into the property
Take note of the sunset period and how long it is. What's a sunset period? It's the length of time the developer has to build the property before they have to return your deposit to you if they haven't completed the property.
Buy a property that's north facing if possible. You'll maximise the natural light you will get in the property.
How will the builder and developer communicate with us during the build and post construction?
Can we sell before construction is finished?
How long between title registration and settlement?
Buyers should be very wary of any promises made by developers or agents as a reason for buying into their development.
Ask the developer to show you their portfolio of completed projects as well as providing you with the opportunity to speak with previous customers.
It’s also important to ask the developer how they are funding the new development and what will happen to the deposit that you are paying.
Your deposit should be held in trust by an intermediary until completion of the property.
Get a pre-approval in place to understand your borrowing capacity.
If you would like to know how much you can borrow or have any other questions, please feel free to call us on 0487 344 352 for a free no obligation service.
Disclaimer: The Information is general in nature and does not take into account your particular investment objectives or financial situation. It does not constitute, and should not be relied on as, financial or investment advice or recommendations (expressed or implied) and is not an invitation to take up securities or other financial products or services. No decision should be made on the basis of the information without first seeking expert financial advice. Your full financial needs and requirements would need to be assessed prior to any offer or acceptance of a loan product. Subject to lenders terms and conditions, fees and charges and eligibility criteria apply.