Our response to limit the spread of COVID-19 | Read here
Untitled-1

7 things you need to know when buying off the plan


Over the past few years, there’s been a lot of media attention around people buying property off the plan and not getting what they purchased at settlement, or in some cases, not getting a property at all. Buying off the plan can be really beneficial, but there are seven important things to be aware of before signing on the dotted line.  While this isn’t a comprehensive list of everything you need to know, these are some of the major things to look for. Make sure you get professional property advice to mitigate the risks and never buy any property, especially off the plan, with an experienced property lawyer helping you with the contract.

Know what you’re buying

This may sound silly, but because you’re unable to view the ‘bricks and mortar’ of the property you need detailed information on what you’re getting to make a solid judgement if the property is appropriate for your needs. Many off-the-plan disputes arise from a gap between expectations and reality of the quality of the fixtures and fittings, so make you know exactly what you’re getting, including brand and model. Don’t be afraid to ask lots of questions.

Don’t skimp on legal advice

Everything hinges on the strength of the contract, and a good lawyer will ensure everything is documented properly so you get what you paid for.  Ambiguity of contract terms is a huge factor in disputes arising from off-the-plan agreements, so it’s imperative to have a comprehensive contract that sets out exactly what you’re buying – from the features, fixtures and fittings, to insurance, timeframes and dispute-resolution processes.

Be aware of sunset clauses

Be careful that the sunset clause (the date the contract expires and ceases to be valid) gives sufficient time for the developer to complete the project. If it’s too short, it may be possible for the developer to sell your property to someone else before completion.

Know who you’re buying from

Make sure you’re buying from a reputable developer. Do your research and check they have a history of successfully developing projects similar to what you’re looking to purchase.

Take advantage of early selection

One of the main benefits of buying off the plan is getting first dibs on the unit of your choice within a development.  This can often be at a competitive price too, as developers typically put prices up closer to completion. Make sure you do your research or get professional property advice to be confident you are in fact getting one of the better units in a development at the right price.

Keep your deposit safe

Make sure your deposit is held in a trust account and never let a developer take your money.  The developer should have the funds required to complete the project, so if they ask prior to exchange if you could release the deposit to them rather than having it sit on trust, walk away.  This usually means that they don’t actually have enough money to complete the build and could leave you exposed to potential losses.

Understand your borrowing capacity

While you can’t get formal unconditional finance approval, it’s a good idea to sit down with your mortgage broker and see if you qualify for a loan in the current environment. Check to see how tight it is, because if you’re on the borderline today, you may have challenges come settlement.


You may also like

What are the pros and cons of ethical investing?

Here we discuss some of the pros and cons of ethical investing, so you can work out if it’s the right approach for you.

Read more

How to invest in a socially responsible way

Find out how you can invest in an ethical and socially responsible way that is aligned with your core values.

Read more
Talk to us

Guaranteed
value

We’re so confident about creating value for you quickly, that we guarantee it with a 100% money-back guarantee.


Call us for a free strategy session

Arrange a call back

  • This field is for validation purposes and should be left unchanged.
Untitled-2 Untitled-2

Arrange a call back

  • This field is for validation purposes and should be left unchanged.

Our response to limit the spread of COVID-19

  • As COVID-19 continues to spread, we would like to take a moment to let you know what Financial Spectrum is doing to respond.

    While we haven’t been directly affected with any confirmed cases, we are taking all reasonable precautions to remain safe.Our priorities are:

    1. Keep our staff and clients safe
    2. Stay fully operational in our service delivery and continuing to manage your financial affairs
    3. Play our part in minimising the impact on our community against the spread of COVID-19

    Financial Spectrum has the technology, infrastructure and systems to continue business as usual remotely and our staff will now be working from home.

  • You should notice no change to our service, with the exception that we are encouraging our clients to meet via video call, rather than face to face, unless requested. We will be contacting all clients with meetings booked over the next two weeks with instructions for a video call.This is an evolving situation and we will continue to monitor developments. We will keep you informed of any material changes to our approach.

    These are unprecedented times and we understand that many of you will be feeling unsettled about your finances. We would like to assure you that we are open for business and are here to help you. If you don’t have a meeting booked but would like one, or if you have questions, please contact us at info@financialspectrum.com.au or on
    02 8238 0888

Brenton Tong

Managing Director

Google Review

Google Rating
5.0

Register

Looking for something?