To buy or not to buy, an off the plan property

When you buy an off the plan property, Nothing has been physically built. You have to base your decision to purchase on either: the Contract, display unit, and architectural drawings. Lets discuss other considerations that may help you decide.

Considerations that you should make when purchasing a property whether existing dwelling or off the plan.

  • Location and proximity of the property to the services which you and your family consider to be essential.
  • Finance preapproval.
  • How do you want to hold the ownership of title, sole tenancy, joint tenancy, tenants in common or a combination.
  • The layout of the property, are the windows north facing, this directly affects you heating and cooling bills or is floor plan for 2 bedroom, 1 bathroom, carspace enough room to grow.
  • Engage an experienced inspector to provide Pest and Building or Strata reports, these reports can advise you on defects rectification and assist with your budgeting for expenses such as any strata fees, and special levies, if applicable
  • Have your contract reviewed and seek relevant advice prior to signing
  • What are the levels of rental demands if you are buying the property for investment purposes.

Consideration particularly when buying a property that is an off the plan.

  • Is the property a quality project? Inspect other projects that have already been built by the developer.
  • Does the time frame of the construction suit your future needs. The time frame for when the property is to be completed can range from months to many years in the future. This term is called in the contract is the “Sunset Clause”. The contract may also give the seller rights to extend the time frame of completion.
  • When does your finance preapproval expire? Banks are unlikely to provide unconditional loan approval, that is loan documents are not finalised until after the property is built.
  • As the property is a new home you may be entitle to stamp duty discounts.

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DF Legal is a boutique law firm with over 15 years of combined experience practicing in a wide range of areas including Property Law and Conveyancing, Commercial Law, Wills, and Estate Planning, Franchise Law, Building Disputes, Commercial and Retail Leasing, and more.

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