What does Buying off the plan mean?
A new apartment at a good price is perceived as the norm with off the plan sales.
Prices vary and values change. You are purchasing new at existing market value. This is likely to increase in value before settlement occurs.
A sense of investment for your future, whether you reside or buy as an investment.
You will be entering into a legally binding Contract to purchase an apartment not yet completed. It may not of have started, nor received occupancy approval. This is where your Agreed Terms & Conditions of the Contract have to be strong, for you to be satisfied on completion.
The writer has met Jonathan Eyles of Highland Property Agents – Sutherland, whom kindly provided us with the following comments in regards to Buying Off The Plan:
Comments by Jonathan Eyles:
“Buying off the plan is becoming more common within Sydney especially among investors and the aging population know as downsizes.
For these downsizers, they have the ability to purchase a new product in the current market that will accommodate their requirements, having many convenient facilities such as lifts, pools & common areas all within a short stroll to cafes and restaurants.
The planned time frame gives them adequate time to sell their own home without a rush or any pressure.
For investors, they get to lock their purchase price into the current market taking advantage of the widely predicted prices over the development period.
My advice is to look into the track record of the developer as developers with great reputations to protect assure you of a quality product with a profitable long term outcome.”
Thank you Jonathan Eyles for your comments.
Buying a NEW apartment at the best price.
Opportunity to ask the Developers for changes, for example: turning the Study Area into a Bedroom, or changes to power point locations, maybe the doorway to a room, etc.
On the odd occasion you may be able to ask for a three bedroom, that was a two bedroom. This would make your apartment slightly larger and change the price. This does occur occasionally.
Purchasers benefit in saving more before settlement and reducing the amount they need to borrow. Often Settlement occurs within twelve (12) to twenty-four (24) months, depending on the size, location and style of the complex. Weather also contributes to finishing times.
Extract from NSW Fair Trading:
“The NSW Office of State Revenue provides certain concessions to people buying property off the plan. These include stamp duty exemption and grants. Check whether or not you are eligible at the NSW Office of State Revenue website at osr.nsw.gov.au or call 1300 130 624.”
The above extract is for NSW. If you are unable to locate your states correct authority, please send us an email and we locate it for you.
Depending on the timing of your purchase, there are schemes/projects which may assist you financially, e.g.: as the First Home (Strata) Owner Buyers around Australia which varies from state to state. You may be entitled to an exemption, on concession from stamp duty for properties purchased off the plan.
In NSW, they have offered for example where off the plan purchases were able to apply for a grant of $5,000. This grant came with terms e.g.: provided the value does not exceed $650,000 and the vacant land does not exceed $450,000.
Please consider when reading the above to always research and seek the correct professional advice as circumstances differ for each individual and/or transaction.
If you do your research and obtain the correct advice, you should avoid the risks that could arise and receive the benefits of a financial scheme available to you at the time of your purchase.
You are purchasing an apartment not yet built. You are buying now and paying later.
Make sure you seek the correct professional advice, get a second opinion for Financial and/or Legal advice, the stronger your Contract the less likely problems will occur. This is a key reason why we write for LookUpStrata. You can resource Strata information nationally. You can email or comment and various professionals are there to assist.
Jonathan Eyles contact details: Highland Property and/or mobile: 0414 168 686.