With the introduction of various government grants and concessions available in both the ACT and NSW for individuals purchasing newly built homes; we have noted a significant increase in those clients wishing to purchase residential property ‘off the plan’.
To buy a property ‘off the plan’ means to enter into an agreement to purchase land where a house, unit or townhouse will be erected or developed on the land after contracts are exchanged but prior to the settlement of the purchase.
Whilst there may be many advantages to purchasing residential property ‘off-the-plan’, it is important for any prudent buyer to also be aware of the potential risks.
Benefits
- New and modern buildings and fixtures
- New environmentally friendly designs
- Input into the design/colour scheme
- First home owner incentives and stamp duty concessions
- Longer lead time for saving
- Fluctuations in property market (this can also be a potential risk)
Potential Risks
- Fluctuations in property market (this can also be a benefit)
- Changes in circumstance (personal and/or financial) during construction phase
- Long waits and delays (know what your contract says about this)
- Plans may be subject to change (know what your contract says about this)
- Varying quality (know your builder/developer)
We strongly recommend for those interested in purchasing a property ‘off-the-plan’ that you are aware of the processes involved and the options available to you.
Tetlow Legal can help explain the important conditions of the contract to you in simple terms, and assist you throughout the whole of the conveyancing process, including applications for home buyer concession.
If you or someone you know would like to find out more information about purchasing a property ‘off the plan’, please contact Emma Bragg at Tetlow Legal on (02) 6140 3263 or at emma@tetlowlegal.com.au.