We totally get it - there's nothing more exciting than finally owning your dream home! And what's even better is being able to design it yourself, right down to the top-of-the-line appliances and finishes. But hold up for a second!
There is a lot ofexcitement and bliss in being able to own your own home. The excitement ofowning your own home is unparalleled, as it represents the fulfillment of alifelong dream and the achievement of a significant milestone. The prospect ofhaving a place to call your own, a sanctuary shaped to your tastes and needs,fills the heart with happiness.
What can be more enticingfor some, is to be able to own a brand-new home. Where you played a part in thedesign, the colour selections, the brand-new top of the line appliances andfinishes as you have chosen. This is especially so for first home buyers,who can also benefit from government initiatives such as stamp duty exemptions,first homeowner grants and developer incentives.
We see somebeautiful dreams realised every month, but we have seen our share of horrorstories over the years too. So, we want to help you become more aware of some risks and considerations to protect you.
These include the following:
FINANCE RISKS due to Purchasing andthen your registration/completion timeline.
These risks canaffect a lender’s willingness to advance to you a loan to purchase a propertyoff the plan if changes like this occur form your Purchasing to when theproperty is due to settle (this can take years)
Without finance,these risks could affect a buyer’s ability to complete the purchase, withoutalternative means to source funding.
DELAY RISKS
These risks cansignificantly delay completion of the construction and occupation of your home.These delays can also add unnecessary stress and additional expenses to you. Theserisks can be avoided by carrying out proper due diligence into the builder andthe developer. It may be hard to understand if the time of the project is toofar into the future, but doing your own research on them is imperative. Youalso want to understand the quality of the work that they provide, and theirhistory on completing development projects on time.
So in conclusion,buying an off the plan property can be a great option, but it is important tobe aware of the potential risks involved and to take steps to minimise them!There are some amazing properties being built and developed at the moment and alot of people are so pleased with their decision to buy off the plan. But youneed to be thorough.
Before making apurchase, buyers should consult an experienced solicitor in propertydevelopment to assist with investigations and research on the developmentproject, to carry out due diligence, and to ensure the buyer is making aninformed decision.