Buying Off The Plan Property

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Buying an off-the-plan property means committing to purchase a property that has either not begun its construction or is in the process of construction. SD Conveyancing can assist you with the Conveyancing process so that you can relax instead of worrying about the minor details. Our team will help you with your contract and evaluation so you will not have to fret about losing out on your investment.

Benefits of Off-Plan Property Conveyancing by SD Conveyancing in Sydney, NSW

  • Affordable, one-time payments only
    All our services are nominally priced and come with no hidden costs; what you see is what you pay
  • Extensive clientele across NSW
    Long list of satisfied and returning clients in the individual, business, and corporate sector.
  • Expert Conveyancer for customized support
    Personalised support and guidance of an experienced professional Conveyancer always.
  • Fast-track contracts
    Offering priority-based contract preparations.

Is it cheaper to buy off-the-plan?

Yes, it is as one can save a large sum on the stamp duty.

Should I buy an off-plan property?

Yes, one of the main advantages of buying off-plan property is that you will save a lot on stamp duty and most states offer more discounts on newly constructed properties. So, if you sign the contract for a property before the construction has started, the stamp duty will be applied to the land value and not the finished product.

What does off-plan Reservation mean?

This refers to the purchase or reservation of a property before its completion. In some cases, off-plan reservation is done even before the actual construction works start.

Why do developers sell off plans?

Selling off plan reduces the financial risk for the developers, and it is a cheaper financial alternative to procuring a loan from a bank.

Procedure to buying off-the-plan property In Sydney

One of the main benefits of purchasing an off-the-plan property is that the rates will be cheaper as opposed to fully constructed and established properties. This is considered to be a good investment for people who would like to invest long term in something tangible and solid. Here are the steps to buying an off-the-plan property.

  • Suitable Property –
    Primarily, make a list of your preferences, needs, and conditions. In this, prioritise the ones that are non-negotiable and keep the negotiable ones as secondary. Keeping this in mind, look out for a suitable property. One could do an internet search, look up yellow pages, approach agents, or ask friends and acquaintances.
  • Mortgage Agent –
    Approach a mortgage agent or advisor to understand the financials including the mortgage rates, payment plans and so on. Try to negotiate for a good rate that fits within your budget. It would be great to do a background research on the rates as well, before committing so that you do not end up paying an unfair price.
  • Reservation –
    Once the property has been thoroughly reviewed and the financials discussed, make the reservation. This ensures that the property has been kept aside for you.
  • Conveyancer –
    Find a Conveyancer, who preferably has experience in dealing with off-the-plan property buying. They will be able to offer advice on the legal side of things.
  • Mortgage –
    A mortgage lender will survey and evaluate the property and its progress to arrange for the funds.
  • Paperwork –
    Peruse through all the documentation including contracts, deeds and so on with the help of a legal representative such as a Conveyancer to make sure that everything is in place.
  • Purchase –
    Now, you may proceed with the purchase of the property.

Things to consider before buying off-the-plan property in Sydney

Buying a property off plan is a cheaper alternative. However, there are several risks associated with this dealing, so it is very vital to get maximum information about the property before you commit to the purchase and make the payments. Research is key to getting into an off-the-plan property buying. Here are some tips to keep in mind before you buy an off-the-plan property.

  • Deposit –
    The role of a financial involvement is huge in an off-the-plan property purchase. In case the developer gets into any kind of financial crisis such as bankruptcy or even a stay on the construction of the property or so on, the buyer’s money should not be affected. Usually only a 10% of the amount is derived from the buyer, which is covered under an insurance claim, but one has to clarify the terms before committing. It is best to board a solicitor to review the details if the initial investment is more than 10%.
  • Deals –
    There are usually deals such as discounts or early bird offers for off-the-plan buying. Enquire about such so that there is a reduction in the cost.
  • Price lock –
    Ask if the price is locked when the deal is made. It should not increase owing to an increase in their overhead expenses.
  • Inclusions –
    Many buyers shy away from asking this question; but it is especially important to ask what items or facilities are included in the price. This may include fittings, furnishings, maintenance costs, stamp duties and so on. One does not want to miss out on any benefit just because they did not ask.
  • Timelines –
    Ask for a completion and move-in date. This might not be exactly predictable when in the process of construction, but it is important to have a tentative date in hand.
  • Other owners –
    It is good to know if other blocks have been already sold and to whom. If you are going to be a permanent resident, it is ideal to know what your neighbourhood would be like.

What are advantage and disadvantage of buying off-the-plan property?

For those looking for serious long-term investments, a property is the best asset. Buying off-the-plan properties have been considered the best option if you have your financials in place. Off-the-plan property buying refers to the purchase of a property before the builder commences the construction or whilst it’s being constructed. This has proven beneficial to the buyer by getting them the best rates. The following are some of the advantage and disadvantage of buying off-the-plan property.

  • Advantages
  • Price –
    This is the primary highlight of an off-the-plan property purchase; the rates are not fixed and hence there is a large window for negotiation. The buyer should make the best of this opportunity and get the best prices. The price will escalate once the property is constructed fully and is open for moving. This again, is beneficial to the buyer as they will get a better resale value for the property.
  • Personalisation –
    As the construction is yet to start or is in progress, it is easy to suggest the needs and requirements of the buyer. Such specific customisations even in the structure can be implemented easily at this stage.
  • Peace –
    Most builders offer a 10-year warranty on newly built homes and hence one will not have to worry on the structural competency or other factors when they move in.
  • Disadvantages
  • Mortgage –
    If you do not have funds ready and have to take a loan, it might be a little difficult. Most mortgage agents do not offer mortgage loans on off-the-plan property purchases. Besides, even if they do, the period will be for six months and in case the construction period is over six months, it might be tricky.
  • Timeline –
    Though the documentation and payments happen quickly, the actual construction might take some time. In some scenarios, the timelines may even extend due to unforeseen factors. This might be tough especially if the buyer has let gone their accommodation and is waiting in anticipation to move into the new place. Delays mean that they will have to look for a temporary accommodation, which will be an extra expenditure.
  • Sizes –
    As one cannot physically view the place they are about to purchase; in some cases, the rooms might end up being a lot smaller than expected. Though one can view the blueprints and layout, to make sense of the available space from just a 2D drawing might be difficult.

Types of property considered to be off-the-plan

Based on one’s requirement, there are different types of off-the-plan properties. There are off-the-plan apartments, off-the-plan houses, and off-the-plan townhouses for residential purposes. Depending on the builder, they vary in facilities and features. For those looking for a commercial space – a private office, a franchise, or an MNC, there are off-the-plan buildings and office spaces available. Knowing where to look and whom to contact is key when it comes to purchasing off-the-plan property purchases.

SD Conveyancing is a leading Conveyancing agent in Sydney. We are led by a team of expert Conveyancer who come with years of experience and in-depth subject knowledge and are capable of rendering support and solutions to all kinds of Conveyancing needs. Certified by the Australian Institute of Conveyancer NSW Division (AICNSW), we run in a meticulous manner and consider every customer be an asset. We offer personalized solutions to every client as we understand that their needs are varied. Once a client is onboard, a dedicated expert is assigned to them who studies their case and offers the requisite support. One of the key features of SD Conveyancing is that we strive to cater to customers from all walks of life and hence our prices are affordable. We have a one-time payment module in place wherein there are no hidden costs or fees.

Off-the-plan property buying is in trend and we get hordes of clients who look for contract reviewing, and other services associated with off-the-plan deals. We undertake all services for off-the-plan apartments like buying a house off plan, off-the-plan townhouses purchase, and off-plan real estate selling and so on. Contact us today for assistance with off-plan property purchases.

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