For those on the hunt for a property, buying off the plan can be a great move for some security in your investment. It has advantages such as locking in a price to safeguard against rising values, as well as a number of tax advantages.
Off-the-plan properties may just be the solution for investors who need to organise their finances or first homebuyers who currently do not have enough capacity to purchase.
However, there’s still some confusion from buyers, who still have to follow some steps to make sure they are getting the most out of their investment. It is important for homebuyers and investors alike to perform their due diligence and understand where and why most mistakes happen.
NOTE FROM AUSTRALIAN REAL ESTATE BLOG EDITOR Peter Mericka B.A., LL.B: This article provides a number of “DOs and DON’Ts”, but it does not address the issue of a contract that is subject to finance. Finance approval by a purchaser’s mortgagee will satisfy most “subject to finance” clauses, but finance approval usually lasts only 3 months. Thus a purchaser may find that an off-the-plan purchase is unconditional after a short time, but finance may no longer be approved by the time settlement arrives! Also, those considering an off-the-plan purchase should read the following article: Off The Plan FAQ