The process of buying off the plan property is not as straightforward as it seems. Unlike established property, you’re basing your investment and purchase decisions on floor plans and drafts. If you’re looking into buying off-plan property, here’s a seven-step guide to help you go through the purchase journey.
What is off-plan property? It is a kind of property that developers are selling even before the actual structure is complete.
Your first step to buying off the plan property is to establish your purchase goal. Ask yourself, “why am I buying this property?” or, “what is this property purchase for?” Because property investments require so much capital, you need to make well-informed decisions.
Make sure to settle on why you’re buying off the plan property and what you want to get out of your investment before anything else. Once you do this, you’ll be able to make better decisions later on.
After deciding on your off the plan purchase goal, you can move onto the next step – setting your budget.
When it comes to budgeting for an off-plan property, settle on a number that you can comfortably afford. Make sure to factor in all the other expenses you’ll incur as you go along the purchase journey. You’ll likely spend on travel expenses when you’re looking around for available properties in Brisbane.
Tip: Buying off the plan property usually requires you to make a 10% deposit. If you don’t have enough to shell out this much, consider revising your budget or exploring other property investment strategies.
The next step in buying off the plan property is to set an appointment with a reputable property consultant. Talking to a consultant about your property investment plans has a lot of benefits. With a reliable property consultant helping you out, you’re sure to enjoy these benefits:
In a nutshell, having a property consultant helping you buy off the plan property gets you the best deal out of your budget.
If you’re looking into buying off the plan properties, feel free to reach out to us here at A9 Property. We’ll be happy to answer any of your questions or assist you with any of your property investment needs.
After consulting your property agent, you’re now ready to shortlist possible off the plan properties to buy. To help you narrow down your options, here are the things you need to consider:
Once you’ve found two to three properties that satisfy your requirements, take a step back and evaluate each option. When buying off the plan property, especially at this stage, make sure to take your time. When the need arises, talk to your property consultant about each property one by one. Let your consultant know once you’ve decided so they can reserve the property for you.
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When you’re able to reserve the property you want, you can proceed to finalise your contract. At this stage of the off-plan property buying journey, you’ll need to nominate a solicitor with experience in drafting off the plan contracts. You can also ask your property consultant to assist you in this matter.
As with all legal contracts, you’ll have to review all clauses, inclusions, and exceptions written in it. Remember, investing in property is a huge and long-term commitment. Know what you’re getting into before you sign on the dotted line.
Finalising property contract also means you’ll have to pay a 10% deposit fee to the developer. Make sure you have this on hand when you’re at the contract-signing stage.
Tip: When looking for a solicitor to help you with the legal contract, consider their experience over their professional fees. Settling for a solicitor with cheap professional fees can be a wrong way to start buying off the plan property. It can even cost you more in the long run.
After finalising your contracts and paying the deposit, the next step is to wait for your settlement. This can take up to six months to a year. As you wait, you’ll receive regular construction updated from your property’s developer.
At this stage, ensure that you’re receiving these updates. The updates are essential as it’s the way developers let you know of the changes they’re making to the property as it’s being built. If you’re not receiving any updates after you’ve signed the contract, talk to your property consultant right away.
As soon as your property’s complete, your property consultant will schedule a settlement inspection for you. During this time, you’ll have an up-close look at the property you invested in.
When you’re inspecting the property, take note of all the defects and builds issues you see. Make a list and raise these to your consultant and the developer as soon as possible.
After all the necessary repairs have been made, you can start moving into or renting out your new property. Depending on the payment scheme you agreed on during the contract-signing stage, you’ll need to settle your remaining balances accordingly.
There’s no doubt that buying off the plan property is a big commitment. However, this doesn’t mean you have to go through the process alone. When you’re equipped with the right knowledge and supported by a reputable property consultant, you’ll be able to acquire off-plan property that suits your needs in no time.
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A9 Property is a team of property specialists helping first-time homebuyers and property investors on their journey into the real estate market. Our weekly real estate blog touches on industry trends, market shifts, and investment strategy, providing you with valuable insight into your property purchase journey. We are experts who specialise in off the plan properties–a popular investment strategy in Brisbane and Australia. Check out our carefully selected portfolio of off-market properties for sale or contact us for an obligation-free chat to discuss the best strategy to start building your portfolio.