Australian housing market can be challenging, particularly if you live in a capital city. Individuals, as well as investors are looking at numbers and more cost-effective ways to purchase a property. Individuals will find buying off-the-plan properties as a time opportunity that don’t come with ordinary property purchases.
New properties are all the rage at the moment, as far as state and territory governments are concerned. Most provide stamp duty concessions for brand new properties, as they attempt to stimulate their economies through construction.Disappointment is a true factor, the finish product in some cases it’s not according to your vision or what you’ve pictured. For these reason, when you decide to buy an off-the-plan property you have to keep your eyes opened as well as your heart, for compromises. A comprehensive set of plans or architect’s vision may be totally different of what you’ve expected. You’ve been warned!
Search and research- usually when a new project arises, the first properties released go for the cheapest. Get information about the developer and his previous projects, to make an idea of the finished products, and find out if it’s reliable. Buying from a reputable developer is well-worth the money. You need to look for any cancellations or suspensions of the license; if the search turns up any concerning results, you may want to reconsider entering into a contract with the developer.
An off the plan purchase means you can lock in the ownership of a property, without having to settle for an extended period of time. It may be one or two years before settlement, so capital growth can often make your initial deposit more valuable in the meantime. Make sure that your deposit goes where it should. Transferring money to a personal name is unacceptable, even though they claim it’s safe.
Understand your contract and ask questions. In some cases, projects took more than expected, so you need to secure yourself and make sure you still have a place to stay. Don’t interrupt your rental contract before you know exactly when you can move into your new home.
Cooling off period - A cooling off period of between three and five days applies to your contract in most states. This means you can change your mind about purchasing the property during this time. However, if you decide to withdraw during this time you may be charged with a termination penalty by the developer (0.25% of purchase price). Once this period ends, you are legally bound to buy the property.
Identify the defects: Normally, off the plan contracts provide that the developer is to remedy any defects identified by you as the buyer, prior to you settling on your purchase. Prior to settling, as the buyer you are given a right to pre-inspect the property and identify any defects to the developer.
Insurance: it is in the duty of the developer to assure the insurance cover before entering into a contract for the sale of the off the plan property, provided the contract is for more than $20,000. The insurance covers the owner of the property for loss or damage resulting from non-completion of work, loss of deposit, or breach of statutory warranty.
We can provide you with data, researches done in the area, details about the developer; leave it all to us and we will compel a case report for you that will bring you all the information needed in order to purchase safe your next house. Our team is always updating with the latest news in off-plan-housing having you in our mind and thoughts, to assure you will sleep in your brand new house in near future.
Contact our friendly real estate agents for assistance buying any off the plan home