BUYING AN APARTMENT OFF THE PLAN.
Buying ‘off the plan’ provides investors with the opportunity to buy some of the best-positioned apartments within a complex. When the market is rising, it can also sometimes offer property investors a capital gain by the time construction is completed.
Here are some tips to help you make sure you make the decision that’s best for you:
• Make sure you look carefully at the displays that developers make available. These will show examples of carpets, tiles, kitchen fittings and finishes, colour schemes and general fittings.
• Ask about previous projects that the developer has completed. Arrange an inspection to make your own judgment as to the quality of construction.
• Ask residents of the developer’s previous projects how happy they are with the property they purchased.
• If you’re not confident you understand floor plans, consider asking an architect to assist you with your decision making.
• Banks generally won’t provide unconditional approval of your property loan when you buy off the plan. If the market moves downwards, between your purchase and settlement, you will need to be prepared to find additional funding.
• It is a good idea to include a finance clause in your contract and get a valuation ‘as-if-complete’ when you’re getting your initial approval. This will allow you to gauge how the property stands within the current market, as well as how the bank views the area and the property’s potential.
• Get legal advice before signing a real estate contract. Make sure you understand delivery timeframes, sunset clauses, size variation clauses and confirm that you are buying what you believe you are buying.
By conducting your due diligence and taking your time, you can take advantage of what off the plan purchasing can offer buyers; a way to secure a quality property in the future, at today’s price.