Buying apartments off the plan is a great way to get a good deal on property. It’s often a top choice for both new home buyers and investors as it provides the opportunity to secure a brand new property, often at a much lower cost than if the property was already built or established. Here is some this you should know about buying apartments of the plan to help you decide if it’s a good idea.
What is it?
Buying apartments off the plan means that you are purchasing a property that is yet to be built or that is still under construction. People will usually make their decision about whether or not they want to buy based on the building plans, renders or designs that they receive rather than an inspection or photos of the actual property. Sometimes developers will prepare display options so that homeowners can walk through and see what their new property might look like.
There are some great advantages to buying apartments off the plan, but there are also some potential drawbacks that you should consider.
Firstly, because the property has not been built yet, there are some great pros. You will for example have the opportunity to provide some input into the design and layout of your apartment and get to make some decisions about style options.
You’ll also get a discount on the purchase price of your property, which means when it’s been constructed it may immediately be worth more than you paid for it. This is often particularly attractive for investors and one of the main reasons, why many of them opt for buying apartments off the plan.
One of the major reasons why it’s good to buy a new property is that it means that the property is covered by the builder’s guarantee. This means that should any issues arise with the build as a result of the builders’ workmanship, they will need to rectify it. This gives buyers peace of mind as it means they won’t be responsible for costly fixes should something go wrong or if there’s a problem with the quality of the workmanship. It’s often the case that people don’t discover problems with the established property until they’ve already purchased it, buying apartments off the plan takes much of that concern away.
There can be drawbacks, however. Sometimes when buying apartments off the plan, they might turn out looking differently than you might have expected. It’s often hard to tell from a single render what something is going to look like.
You may also find yourself facing construction delays. For many people buying apartments off the plan, it can be frustrating to discover that they have to wait longer than initially anticipated for their new home or investment to be ready.
Deposit and finances
One of the great things about purchasing a property in this manner is that it often allows people to secure their new home with just a small deposit. Finance can then be worked out later. Buying off the plan gives you more time to work out finance and allows you more time to save money for your deposit. They also often come with stamp duty concessions and people usually only pay the land value of their property. Many first home buyers find that they have access to great benefits when they are purchasing new too, like the first home buyers grant plus investors often get tax breaks for buying apartments off the plan. The downside of buying ahead of time is that your situation could change.