Purchasing off-the-plan property can be a great option for anyone looking to take the leap into the property market. To ensure an easy transition from concept to completion there are some important matters that need to be considered.
Use these four tips to ensure your off-the-plan purchase is as simple and smooth as possible.
The hardest part of purchasing off-the-plan is often managing your expectations. It is important to ensure the contract clearly outlines, in writing, what the developer is promising. Consider what you expect from the finished product and ensure that the contract outlines this in an easily understandable way. Once the development is complete you can evaluate the end result based on the contract, ensuring your expectations are met.
GET TO KNOW THE DEVELOPER
As with any property purchase you need to do your due diligence. Research the developer to find out what kind of reputation they have in the industry. Have a look at some successful projects they have completed, but also be aware there may be projects that never took off. You may even be able to find out why these projects were never completed.
It is also important to research the suburb you are buying into; again, as with any property purchase, you should be aware of the market value, rental yields and potential for growth.
DON’T PAY TOO MUCH
There is no guarantee that the price for which you purchase the property will reflect the market value of the property once it is complete. This is particularly important to consider if you need to organise finance to assist you in purchasing the property. If you follow the previous tip and do your due diligence on the developer and the area, you should have a good understanding of what the property is going to be valued at once it is complete. You should also consider getting financial and property advice from qualified advisers.
SET A DATE FOR COMPLETION
While delays are not uncommon when it comes to property development, it is important to have a realistic date – in writing – for completion of the property, with scope for the developer to extend if needed – but within reason. Let’s face it, delays can occur and they are neither uncommon nor unreasonable but it is important that you are kept in the loop and informed of progress at every stage of the development.
Purchasing off-the-plan offers many opportunities for buyers to be involved right from the outset. If you would like further information on how an off-the-plan purchase could work for you, contact us today.