What You Need To Know About Buying Off-The-Plan Property

12/02/2015   by The Hopkins Group

Buying off the plan means signing a contract to buy a property that hasn’t yet been built. You can look at the designs, layout and blueprints; but there’s no property to see or walk through yet.

There are positives and negatives to all situations, and buying off the plan is no different. The main thing you should do when considering to buy off the plan is to do your research. From a reputable and financially stable developer, builder and architect, to knowing your financial situation – there are many points for you to consider.

With only 10% deposit due on the property, you can pay the balance at settlement months or years later. This gives you time to understand your financial situation and be well prepared for settlement. 

Conduct research before committing to the first property you see!

It is important to source background information on the development company as well as the builders. Have a look at the developer’s most recent developments and the quality of work they deliver, to see if it meets your expectations and if the work was completed within deadline.

Discover their reputation and financial situation; you don’t want a company on the brink of bankruptcy. If a company was to be hit with financial hardship you need to ask questions – where does this leave you? At this point you are essentially investing in a developer, not a property. 

Get to know the area in which you’ll be buying

Are more developments taking place and how this could affect your property? Are other buildings going up around you? It is good to know all this information before you sign and agree to the contract.

Seeking legal advice is also strongly advised, this way you understand the details of the contract and can feel confident about what you are signing. You can ensure that you are covered for all situations, even if the development did not go ahead or was never completed. The Hopkins Group has over 35 years of experience in this area and ensures when they agree to recommend a property that if these circumstances were to occur, our clients are completely covered. 

Buying off the plan could benefit you financially

Some states offer stamp duty savings to those who buy off the plan properties. This is attractive as an investor, even more so in some states as a first home buyer where further concessions apply.

Buying off the plan is also particularly beneficial to those who are eligible to apply for the First Home Owners Grant as this grant is currently only available for new properties.

In addition to the stamp duty benefits and potential grants, when you buy a property off the plan, you get a 7 year builder’s guarantee. This means that if anything was to go wrong with the structure or interior of the property within the 7 year time-frame, the fault must be repaired by the builder, just to add to your peace of mind when thinking about buying off the plan properties.

Any way to save money will be a positive in the experience of purchasing property. If you are buying an existing property you’re looking at extra, possibly unforeseen costs. Once again, it is imperative that you do as much research as you can, or seek advice from companies like the The Hopkins Group to assist you with the process, so nothing is overlooked. 

In summary

Buying off the plan comes with positives and negatives, but if you do the proper research and have an understanding of expectations, there’s no reason why you can’t live happily in your own home or invest in an excellent property with great benefits.

The Hopkins Group can provide you with expert advice. Our experienced property advisers are specialists in the area of off the plan property. We have worked with some of the best developers in the country for over 35 years and source high quality properties which have met rigorous criteria. We only recommend property that we are confident will have strong demand of both tenants and owners, that there is no questions about future growth; no questions about security and flexibility.

If you would like further information, please contact The Hopkins Group on 1300 726 082 or email us info@thehopkinsgroup.com.au

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