Common concerns when buying off the plan. There are many benefits with buying off the plan, however some feel nervous or suspicious about it. In this article we want to highlight some common concerns when buying off the plan. Buying off the plan means you’re purchasing a property before it is completed.
Below is a summary of common concerns:
What if the builder goes bankrupt, will I lose my deposit?
There are many reputable builders to choose from. Do some research in advance. Confirm their experience, review their work and determine their client’s feedback.
Looking at a builder’s reputation and experience provides much-needed security and assurance.
In addition, obtain advice. This will minimise the risks associated to fearing the builder’s bankruptcy. A buyer’s advocate can due the diligence on your behalf.
What if the house turns out different to what I expect?
Another common concern is the fear it may not look anywhere the same as you were told or viewed in a display home. Taking some time at reviewing the floor plans, specifications and understanding the contract of sale are just a few ways to remove this fear.
Visit a display home that is a like for like basis is a great idea, while some offer a walk-through of a near completed home.
One of the best ways to help past this concern is to ask questions. Never make an assumption. Always ask more questions.
I’m worried about building delays
Many worry that new houses won’t be ready on time. Work with a trusted builder who has proven feedback. If there are past delays, previous buyers will be sure to mention it. Read their testimonials.
Employing a buyer’s advocate is a great intermediate when buying off the plan. They can ensure regular communication is available while remaining unbiased.
What if the property falls in value
Some buyers feel concerned that during the construction of their property it may fall in value. We can appreciate buyers feeling this way. In the event this occurred, it does not mean you bought a bad property. It may be a property cycle.
The most sensible approach to buying off the plan is to purchase below your budget. Obtain a pre-approval and scale back your spending budget. This creates a buffer and allows you to mitigate a valuation issue.
Its also not unheard of to see valuations increase during the construction time. When buying off the plan, obtain advice is also a valuable partner to help you make the right decision.
I don’t understand the contracts when buying off the plan
Any property purchase requires a contract of sale to execute a transaction. undoubtedly the contracts can be complex and confusion. Before signing a contract of sale, we recommend having the document reviewed by a solicitor or conveyancer. Employing a buyer’s advocate will also be in a position to help you execute the contract and help facilitate your purchase.
How can we best overcome these concerns?
We all work hard and no one wants to lose their hard earned money. Buying off the plan requires advice. Obtaining advice from an independent professionals will make the experience comfortable and enjoyable.
Many buyers have been enjoying buying off the plan for decades. If you are well resourced, we are sure you’ll also enjoy the benefits.
If you’d like to talk about buying off the plan, please don’t hesitate to contact us. We specialise in sourcing brand new and off the plan properties.
If you’d like to learn more about buying an investment property, please don’t hesitate to contact us. We would welcome the opportunity to help with your property purchase. Our YouTube channel and Market Insights also provide a wealth of information to assist you with many areas relating to property investments.
While we have taken care to ensure the information above is true and correct at the time of publication, changes in circumstances and legislation after the displayed date may impact the accuracy of this article. If you want to learn more please contact us. We welcome the opportunity to assist you.
August 2020
