Benefits For Buyers
Buying off-the-plan will also give a first homebuyer advantages not available to a purchaser of finished second hand property, like:
- Stamp duty savings in many instances.
- The ability to customise floor plans and finishes.
- More choice in terms of apartment types, which means greater choice of layouts, views and finishes.
- Easy payment terms with only 10% deposit required and the balance due on settlement.
- Often, interest on deposits can be received when cash deposits are paid.
- Security for deposits as all deposits are held in trust.
- Alternative deposits, which mean you can use a lower cash deposit, a bank guarantee or a deposit bond (project dependent).
5 tips to buying off the plan as a first time buyer
- Get yourself into financial order; know your financial position, your borrowing capacity and the lending policies of the bank in relation to different property types and locations.
- Do your research; don’t buy the first property you look at. Understand the median apartment prices growth, vacancy rates, rents, employment statistics and demographics. Get to know the area, transportation linkages, and current and planned infrastructure projects.
- Research the development team, who’s going to delivery this project? What’s the track record for the builder, developer, architect and sales agent? Go and visit some of the builder and developers recent projects.
- Get proper independent legal advice from a specialist property lawyer before signing anything.
- Understand the time frames around the delivery of the project and the sunset dates in the contract of sale.