Blog Article

Market conditions have softened over the past year that leads to more opportunity to secure a property off the plans as a home or investment property, often at a lower price. However, since you’re purchasing before the property is built, there are important steps to take to ensure you’re making a sound investment. Here are some key tips for buying off the plans that can help you make the right decision.

Understand the Developer’s Track Record

The reputation of the developer is crucial when buying off the plans. Investigate their previous projects to see if they’ve delivered on time, within budget, and to a high standard. A developer with a solid track record provides more confidence that your project will be completed as promised. Given our adviser’s experience we can help you in providing information and feedback on past projects the developer has been involved in.

Carefully Review the Contract

An off-the-plans purchase typically comes with a detailed contract that outlines the specifications of the property. Make sure to have this reviewed by a solicitor experienced in property law. Key points to look out for include:

• Sunset clauses (dates by which the development must be completed)

• Deposit terms

• Rights to cancel if the project is delayed

• Final specifications of the property

Check the Builder’s Warranty

Ensure the property will be covered by a reputable builder’s warranty, such as a 10-year Building Guarantee. This helps protect you against any structural issues or defects after construction is completed, providing peace of mind.

Secure Pre-Approval for Finance

Most lenders will grant conditional pre-approval for off-the-plan purchases, but the final approval will depend on the property being completed. Make sure your pre-approval covers the expected completion date and price, and account for any changes in interest rates or lending rules over the construction period.

Our Advisers have a wealth of experience in supporting our customers journey through this process in securing terms from Lender’s that best fit your profile and situation and also what’s required to meet the Bank’s requirements.

Visit Display Homes or View Plans in Detail

If possible, visit a display home or show suite to get a sense of the quality and layout of the development. Otherwise, scrutinise the architectural plans and 3D models. Understanding what the finished product will look like is essential to ensure it meets your expectations.

Consider Future Market Conditions

The property market can fluctuate, and while buying off the plans may offer a lower price at the outset, ensure that you’re comfortable with potential market changes. Understand that property values may change by the time the project is completed, which can affect your investment or ability to sell.

Be Mindful of Hidden Costs

While the initial purchase price may seem attractive, keep an eye on additional costs such as:

• Legal fees

• Valuation costs

• Connection fees for utilities

• Levy payments for apartments or managed developments such as Residents’ Association costs and Body Corporate fees.

Monitor Construction Progress

Throughout the construction period, stay in close contact with the developer to check on progress. Delays can occur, and being informed can help you prepare for potential changes to your settlement timeline.

Be Ready for Settlement

When your property is close to completion, ensuring your mortgage finance is finalised and your solicitor is ready for settlement is essential. There may be a short window to complete all financial arrangements, so having everything in place early is key to a smooth settlement process our advisers can make this process seamless as so you have the smoothest

Following these tips can help you make a more informed decision when buying off the plans. If you are interested in making a step in this direction our advisers are more than happy to guide you through the process and help you make the right call that’s best for you.