Professionals Nowra Considering buying off-the-plan?
Here are some points to help you weigh up the pros and cons of buying off-the-plan:
1. The potential to save on price
In a rising market, buying off-the-plan can be a masterstroke. You’re committing to a property at today’s prices and, if all goes well, by the time the development is complete the value of the property will have risen.
However, a property can also decline in price during the building process. To avoid this make sure you thoroughly research the market to make an assessment of how it is likely to behave.
2. Time to save a bigger deposit
A 10% deposit will usually secure an off-the-plan property. Once this is paid, the purchaser has the opportunity to continue to save and this can mean taking out a smaller home loan with less to repay each month.
3. Check the specs
To avoid any nasty surprises, carefully check the specs outlined in the sale contract for your apartment. There is no guarantee they’ll match those in the marketing material. Ask lots of questions about finishes and fittings like blinds, curtains, tiles and carpets to get a clear idea of what you’re buying.
4. Have the contract thoroughly reviewed
Resist the urge to sign on the dotted line until you’ve had the contract of sale thoroughly checked by a Solicitor or Conveyancer. Off-the-plan contracts are usually more complex compared to established homes.
5. Go with a reputable developer
Going with an established Developer gives you a bit more security and more than likely the end product will be a higher quality. It also provides you with the opportunity to check out their previous developments.
6. Check your lender requirements
To be safe, ensure you speak with your lender before you start looking at off-the-plan properties so you know whether the type of property you’re considering falls within normal lending conditions. Some lenders ask for bigger deposits or have stricter lending requirements for some off-the-plan properties.
7. Valuable savings on stamp duty
Valuable stamp duty concessions are often available with off-the-plan purchases. Check with the Government Revenue Office in your state or territory to know just how much you could save on duty.