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Things to Consider Regarding Off-The-Plan Purchases

31 August 2019

Are you the type of person that loves to snap up a bargain especially when it comes to buying a property? If so, keep reading!

Buying off the plan apartments, particularly in Sydney is an exciting and fruitful expense as you will be able to purchase your preferred apartment before the others go on the market.

First in, first served!

The best part of purchasing off the plan is the flexibility you have as a buyer to pay it off.

In Australia’s current housing market, prices have been fluctuating. They were on the rise, then saw a slight stabilisation for a short period and now figures show that they are increasing again.

This is the perfect time to purchase an off the plan apartment because you can give yourself the flexibility and security of owning your own apartment, which will increase in value when the build is complete.

The flexibility of not having to fork out the full down payment upfront, for the apartment is the perfect opportunity for investors and couples to save their money over an extended period of time.

This leaves them in a less stressful and more comfortable and financially stable position.

Tips on buying apartments off the plan in Sydney

When deciding to buy an apartment off the plan in Sydney there are a few things you should finalise before you make the final decision.

I.        Sort out your finances

Whether or not you think you are able to afford an off the plan apartment, you should consider getting a pre-approval from a banking institution or financial advisor.

A financial expert will be able to advise you on suitable payment plans and check your credit rating before allowing you to commit to a purchase.

As a rule of thumb, most banks will expect the buyer to have a 20% minimum saved up for a deposit for an apartment, however, this could vary.

II.        Know your entitlements

As you may or may not be aware if you are a first home buyer you are entitled to receiving a Government grant so long as you are planning on living in the property yourself and it is not intended as an investment.

These government grants may vary in different states within Australia, so depending on where you are, it is advised that you read up on what you are entitled to.

According to realestate.com.au grants in NSW are usually $10,000 if, for example, the purchase price is up to $600,000 (AUD).

III.        Choose a location

There are many thriving suburbs in NSW with brand new up and coming developments with fantastic amenities. Choose the location based on what is nearby, so for example if there are any local facilities, whether it is close to public transport, public libraries, shopping centres or local food outlets.

You will want to choose a location that is best for you, as the buyer, as well as anyone else living with you including friends or family.

Considering close proximity to work or schools is something to also contemplate when purchasing an off the plan apartment.

 IV.        Seek legal advice

When signing contracts and understanding technical terminology related to buying an off the plan apartment, it is recommended that you seek legal advice before committing to anything.

 A property lawyer will help you understand contracts and all the technicalities involved when making a very important decision such as purchasing your first property.

V.        Know what you are buying

It may seem somewhat straight-forward for some people but for others, it is easy to get caught up in the excitement of it all, that they forget to fully examine what they are purchasing.

Be sure to know exactly what you are purchasing and ask for the floor plan. Study it to make sure that what you are committing to is exactly what you want.

Most off-the-plan projects offer a general selection of pre-designed floorplans and finishes, which leaves you with almost no room for changes after it has been agreed on. So be sure you know what you want.

If you are considering purchasing an off the plan apartment in Sydney take a look at some of these current projects.

To know that you are making the right decision, be sure to go with a reputable, Sydney based property development company with a team of qualified specialists who know the Sydney market back to front.

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Cite Group is a Sydney-based property development company. Focusing on residential buildings, Cite Group has an extensive property portfolio with over 20 developments and counting strategically located across Sydney.

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