Off the plan properties are becoming a very common and at times, are a sound investment option.
Put very simply, purchasing an off the plan property means buying a property that has yet to be constructed. Off the plan properties are typically one or two bedroom apartments in large blocks. Often the land has been purchased already but no ground has been broken.
The benefits of off the plan property are that everything is brand new. However, here are some things that you need to know about buying off the plan properties.
Don’t Rely on the Display Suite
Display suites are designed to hook you. Everything is positioned, lighted and spaced precisely to catch your eye and get your dollars. Check the blueprints instead, taking into account measurements, position of the property on the compass and details that really matter and affect your bottom line.
Check the Fine Print
Some off the plan deals claim construction will be complete within a year, but have a clause worked into the contract that states in can actually be longer, sometimes years longer. Check your contract for fine print like this and other clauses to ensure that you are fully informed. Consider consulting a conveyancing firm to inspect any contracts or documents that you are asked to sign.
Check Out all The Available Options
Jumping the gun on a large purchase such as an investment property is not wise. Shop around. Consider the suburbs that the properties are located in and their available amenities and schools, shops and the like to figure out what would best suit you and your lifestyle.
Ensure Your Finances are in Order
Before embarking on your investment journey, be sure that your finances can support it. The last thing you’d want is to be left in the lurch due to some unforseen circumstance or cost. You may be able to use the equity on your mortgage or owned property to finance your investment property, but consider contacting a legal or financial professional to seek their counsel first.
Commission a Strata Inspection Report
A strata inspection report can determine information on the financial state of the Owners Corporation, as well as details of all management matters and known and unknown building issues within the property. It is a very good idea to get an independent strata report prior to investing in off the plan property.
Get in Touch for More Information
We are able to provide a quick turnaround for strata inspection reports.
Please call us on 02 9181 5989 or book a strata inspection online.