Buying Off The Plan
Purchasing property 'off-the-plan' is an increasingly popular way to enter the property market as it offers a range of benefits and flexibility to the purchasers that is not available when buying an established real estate. When purchasing off the plan it allows the purchaser to have some input into the decor, fixtures and fittings to suit their personal taste. In Victoria it also affords significant stamp duty savings and tax benefits through depreciation, if purchasing for an investment. It also allows purchaser to lock in their property at today's price and enjoy the growth in the marketplace during construction. View the Advantages Of Buying Off-The-Plan for more information.
Tips for buying off the plan
Buying off the plan can be an extremely positive experience if you follow a few simple steps.
1. Contracts
Understand the type of contract you are entering into. There are two common types of contracts when buying off the plan.
The first is a one-part contract, generally used for buying apartments and a majority of townhouses. In this type of contract, you will typically pay a 10% deposit and the balance of the purchase moneys at the completion of the building process.
The other is known as a two-part contract. This is generally used for house & land packages and some townhouse developments. In this type of contract, you enter into a contract to purchase the land from the vendor/developer and a separate contract for the build. The build contract will have staged progress payments at certain milestones throughout the construction.
Standard part A payment schedule:
5% deposit
10% slab completion
20% frame completion
35% lock up completion
20% fix completion
10% final
2. Inclusions
Every builder and developer will offer a different range of fixtures, fittings and finishes that are included in the properties they offer. It is important that you understand what you should be expecting in your property and ensure that you go over this list thoroughly. These inclusions may differ dramatically based on dwelling type and location.
3. Drawings/plans
The working drawings are the blue print for the property you are purchasing. They will form part of the contract of sale and it is important that you understand the exact layout and dimensions of the building, including ceiling heights, electrical layout and external finishes. It is important that if you make any alterations or variations to your new build that they are detailed and documented within your contract.
FREE Buying Off The Plan Guide
Above outlines a few points that you should consider when purchasing off the plan. No doubt you will have many questions about off the plan property. We have put together a guide to help get you started on all the information you need to know about the process. If you would like to download this guide, please follow the link below.
Get in touch
Our team of client managers only deal with off plan property therefore they are well equipped to answer any questions or concerns you have. To find out more enquire today.