2 minute read
BUILD 2025: Apartment living, Buying off the plan
TP Dynamics, Dickson
Buying a brand-new apartment can be an exciting prospect. But it is important to do due diligence and make sure you protect yourself, especially when buying off the plan.
WHAT DOES ‘OFF THE PLAN’ MEAN?
Buying off the plan means purchasing a property that isn’t yet built or completed. This is very different to buying a finished property and comes with some risks. You may find yourself drawn in by the attractive marketing for a new apartment complex, with its beautiful renderings and floor plans, and it’s fun to imagine your future new home. However, the reality of the project and the final product may differ from the initial presentation.
TIPS FOR PROTECTING YOURSELF WHEN BUYING OFF THE PLAN
The ACT has regulations in place to protect buyers when purchasing off the plan, but it’s still important to do your part in understanding the risks.
1. Do your research
Make sure you vet the developer and the project by researching past projects, performance and feedback from previous clients. Look into the developer’s reputation for quality construction.
2. Get legal advice
Hire a qualified conveyancer or solicitor specialising in property law in the ACT to review the contract in detail before you sign. They will look closely at details about payment schedules, completion timelines, and potential variations to the original plans to make sure you understand what you are signing.
3. Understand the project timeline and completion risks
Delays in building are common. The contract should outline penalties for exceeding the agreed-upon completion date, and a realistic assessment of the project’s timeline and potential delays will help you with budgeting.
4. Understand pricing and payment structures
Off-the-plan purchases often involve staged payments. Understanding the payment schedule is critical, including any penalties for late payments.
5. Get your finance in order early
Mortgage lenders may have specific requirements for off-the-plan purchases. Pre-approval for a loan is highly recommended before committing to a purchase. Make sure you factor in ongoing costs associated with apartment ownership, including strata fees, maintenance, and potential property taxes.
