Whatever your current situation if you’re planning to purchase a new home buying off-plan can offer great appeal for a number of reasons. Here are some of the advantages and considerations when buying off-plan.
Choosing the best position
When you buy off-plan you get to choose the ideal position for your apartment. Would you prefer a ground floor apartment or are the views from the top what you seek? Is a North facing apartment to your taste or would you prefer to face the rising sun? When you’re buying off-plan getting in early ensures that you have a wider choice of position.
Finding a fair price
When you buy off-plan you will get the benefit of first release pricing. During construction your property may even appreciate in value so it will be more valuable when you take occupation. You could pay a larger deposit on the property as you can save while your apartment is under construction.
Making a good investment
If you’re buying the property as an investment, depreciation and gearing will allow you to claim tax concessions. Your accountant can help you to make the most of these concessions.
Buying new
There is something appealing about being the first to take occupation of a new apartment, being the first to prepare a meal in the kitchen or appreciate the view from the lounge. If you’ve bought to rent, new occupants may pay a premium to stay in an apartment that is brand new.
Do your research
As with any property purchase, it is essential that you do your research. You must find the property that best suits your needs. When you think that you have found the best-off plan property, check out the developer.
Find out past developments that the developer and the builder has developed. You can conduct a quick Internet search by keying in the company name since customer forums, blogs, news reports, property sites, etc, typically have a lot of information.
Make sure that the neighbourhood has all the amenities such as shops and transport that you need.
It is also worth finding out who’s buying in the block and how many apartments have been sold. Have enough been sold to ensure that the project will go ahead?
Ask the experts
Get the advice of your mortgage lender or your financial advisor before you commit to any property. Your solicitor or conveyancer must review the contract to look for any issues that may require negotiation.
Steps in making the decision
Below the steps in making the off-plan decision
- Set a budget – how much can you afford to spend and how much can you save while construction is underway?
- Describe your dream apartment – what features are important to you?
- Investigate the developer – research previous work. Visit completed projects. Interview people living in apartments for which he is responsible.
- Check out the construction company – find out what the construction company has previously completed
- Survey the suburb – make sure that the amenities that you require are conveniently available
- Take advice from the experts – discuss your plans with your financial advisor. Have your conveyancer or solicitor assess the contract.
Buying off-plan has many benefits, but as with all property purchases the buyer must proceed with caution.
