Buying Off the Plan
Getting in early…
Off-the-plan property refers to the purchase of a house or unit before its construction is completed. This could involve a scenario where the building works have not started or are partially finished. Typically, buyers can visualise the design and appearance of the building through sketches and promotional materials.
When buying an off-the-plan property, the sales contract must feature a prominent warning notice that provides specific information for the buyer, including:
The deposit amount is negotiable.
There may be a significant gap between signing the contract and owning the property.
The value of the property may fluctuate during the period between signing the contract and taking ownership.
We’ve noted down some tips for you…
Buying off the plan can be a smart investment strategy, but it's important to approach it with caution and do your research to ensure you make a wise purchase. Here are some tips to help you make a sound decision when buying off the plan:
Research the developer: Research the developer before buying off the plan to ensure that the development will be completed on time and to a high standard. Look for reviews and ratings online, and check if they have a good reputation in the industry.
Check the location: Location is crucial when buying off the plan. Look for a location that is in high demand and has good growth potential. Consider factors like transport links, local amenities, and the overall desirability of the area.
Assess the property's features: Assess the property's features, such as the layout, size, and design, to ensure that it will be appealing to potential buyers or renters. Look for high-quality fixtures and fittings, spacious rooms, and ample storage space.
Get legal advice: Get legal advice before signing any contracts to ensure that the contract is fair and in your best interests. This can help protect you from any legal issues that may arise.
Consider the potential return on investment: Consider the potential return on investment by looking at comparable properties in the area and assessing their value and rental potential. This will help ensure that you make a smart investment that generates good returns.
Understand the risks: Understand the risks involved in buying off the plan, such as changes in the market, delays in construction, and unforeseen costs. Have a contingency plan in place in case things don't go according to plan.
Keep in touch with the developer: Stay up-to-date on the progress of the development by keeping in touch with the developer. This can help you anticipate any issues and plan accordingly.
By following these tips, you can increase your chances of making a sound investment when buying off the plan.
