Buying Off-the-plan

Buying Off-the-Plan 

Buying off-the-Plan has become very popular in cities as apartment living and higher density housing is becoming more common.

There are great positives and negatives to purchasing of the plan:

 Positives 

  • Stamp Duty reductions in some States.
  • You maybe able to get a good price from the developer.
  • You can choose the location and potentially customise part of your design.
  • Builders Guarantee for faults and problems with the building.
  • Potential for Capital Gains as the value of the property may go up in price before settlement.
  • Potential for Depreciation on your Property.

Negatives 

  • Potential for capital loss through loss in value at settlement time.
  • The development being delayed or not proceeding.
  • Variations to the plan that adversely affect you.  Changes to sizes of internal spaces and quality of fixtures and fittings cannot be guaranteed.
  • Loss of time due to construction delays or termination of contracts.
  • No guarantee of a quality end product.
  • Inability to settle due to personal circumstances changing ie health, employment or financial circumstances.

Off-the-plan contracts are usually heavily weighted in favour of the Vendor.  For example, there are usually many special conditions that give the developer the right to be released from the Contract ranging from inability to obtain approval for the development or finance through to empowering the the Vendor to change the plans and fixtures.  Most Contracts require acknowledgements from the purchaser that are not required in a standard Contract as well.

Given the complexity of these Contracts it is best to obtain  Contract Advice before you sign.  It can save you money.

When researching properties for purchase you should definitely take into consideration who the developer is and also the builder they wish to engage and their experience and quality of previous constructions.

Off-the-Plan purchases can be great, but for some clients they can also be very problematic.  You should carefully consider your options and the prevailing market conditions and expected market trend before committing.

Our legal experience and advice will help you to make a fully informed decision.

Please call us today for contract advice about your proposed purchase or if you would like us to carry out the conveyancing on your purchase. Our operators have seen thousands of off-the-plan contracts over the years and we will look after your interests.

What if I want to get out of my Off-the-Plan Contract? 

If you have purchased off-the-plan and need some legal advice to terminate your contract please contact our office.  We have successfully helped clients rescind (or in other words, terminate) Contracts. We have a strong track record in this area and we know the more obscure technicalities upon which a purchaser can rely in order to avoid an off-the-plan Contract.

If you have need assistance in such circumstances please call us on 1300 907 335 on fill in inquiry form on this page and we will get back to you promptly.

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