Tips on Buying Apartments Off the Plan
Through the years we have seen a lot of clients seeking to purchase off the plan apartments and townhouses simply because doing so provide a lot of benefits and advantages. While buying off the plan can be scary for some individuals, many have learned to rely on a variety of services that we provide to help them gain a better understanding of how to buy apartments or townhouses off the plan. You can click here to find out more about our service and to see how you can also benefit from such services as many of our clients have already found out and can attest to.
Buying off the plan entails certain risks, of course. But understanding these risks can help you make better informed decisions on which type of off the plan apartment you are going to buy. After all, this is going to be your home so you might as well make sure that everything is right the first time. That is why we have come up with some tips on how you can wisely and rightfully buy apartments off the plan (You can also check the tips here). These tips have been used by many of our clients who were also looking to buy off the plan apartments and are now reaping the rewards of doing so. We are thus optimistic that you, too will benefit from these tips.
Always Do Your Research
It goes without saying that one of the most crucial things you can do when buying anything of high significant value is to perform a very thorough research. We cannot overemphasize this enough. From the type of the off the plan apartment to the location of the property, the design of the different units, the provisions of the contract, and even the reputation of the company that is going to build the off the plan apartment, there are simply a lot of things that you need to know beforehand. Perhaps more importantly is your degree of understanding of what off the plan apartments are, what buying entails, and the advantages and disadvantages of such types of properties including any financial and legal ramifications of buying one.
Make Sure to Study the Contract
Before you sign the contract, make sure to study the different provisions. While different firms will have different provisions, they should nevertheless contain the following:
- A cooling off period which should allow you to retract the contract should you happen to wake up someday and realise that buying off the plan is not in your best interests. Take note however that most states in Australia observe a cooling off period of anywhere between 3 and 5 days so you may want to check this out first. Doing so will, however, incur a termination fee from the developer.
- Complete disclosure of the plans including specifications, the time of completion, and the materials to be used in the finishing. Make sure that you understand all of the information contained in the disclosure.
- Warranties and inclusions so you know if any changes to the design or finishing of the proposed apartment is not materially prejudicial to you. Take note that developers have a lot of flexibility in the construction of the property so you may end up with a unit that is not what you had in mind.
There are other things you can look for in a contract such as financing information, management of construction defects, and application of stamp duty, among others.
Buy from a Reputable Realtor, Developer, or Builder
To help you make a more intelligent decision, it is always best to buy off the plan apartments from reputable builder, developers, or even realtors. Choose one that has an excellent track record of keeping its commitments to its clients. This means previous clients have all been very happy with their purchases and that they have not encountered any problem in their dealings with the company. This means, you will have to research on the company’s licenses, its management board, any disciplinary determinations and their results, penalty notices, and even insurance claims paid relative to the finished work of the company.
Check the Warranty Insurance for the Off the Plan Apartment
Always make sure that the company provides a home warrant insurance coverage to help protect you in cases where the project is not complete, there is breach of the statutory warranty, or there is loss of deposit because of some other events. Understand however that this only applies to off the plan apartments that are less than 3 stories high, excluding the car park, if any.
These are some of the most fundamental tips we offer to our clients. Of course, the decision is still up to you on whether to accept these or not. A much better way is for you to meet with a real estate agent who specialises in off the plan apartments so he or she can better explain everything to you.