BUYING AN APARTMENT - NEW OR OFF THE PLAN
Tips for Prudent Purchasing
Location, location, location
Many people believe location is still the most important factor in buying a property and choosing something off the plan is no different.
Check out the developer *
Ask around so you are aware of their reputation. Check out the quality of a developer's previous projects. It will be a good indication of how yours will turn out. Ask the sales agent for addresses. Visit those projects and speak to residents to make sure they are happy. It’s better to pay a premium for a unit from a reputable developer than be saddled with a defective property.
Check out the builder *
Check out the quality of a builder’s previous projects. It will be a good indication of how yours will turn out.
Check out the architect
Google the architect, to get a feel for their work.
Check out the agent
Find out where else the apartments have been sold. Be wary of buildings that have been heavily marketed overseas.
Research the price
Check the prices of similar property in the same area with an off-the-plan building. Negotiate.
Visit the proposed site
Check out the area of a proposed purchase thoroughly, at various times, to ensure it's a quality environment.
Check the property layout carefully
Ideally, you want living areas to face north-north-east and, if it's a two-bedroom property, two bathrooms and a room between the bedrooms, to provide privacy in case you want to rent it out. Parking is a valuable commodity, and can be rented to another resident if you don’t need it (but usually not to non-residents for security reasons). Storage cages are a valuable amenity in apartments, so pay more for storage if need be.
Make sure finishes and fittings are quality
Go over the brochures and any display boards with samples of carpets, flooring, tiling, bench top finishes and joinery.
Try to visualise the finished development
Treat 3D renderings and ''indicative views'' carefully. ''Be vigorous and rigorous in working out for yourself how the building will look, what a unit will be looking out at, whether any views will still be there when you're seated, whether it'll be noisy from a road nearby, how the building will function. Is the parking space wide enough for your car?
Ask About the Levies
Ask the sales person to provide you with the levy schedule or guide. Levies are every owner’s contribution to the upkeep of the common property. They will vary depending on the size and complexity of the building, and what amenities are provided. Extras like lifts and pools add to the cost of running your building. The levies for the first year need to be realistic; otherwise you may face an enormous and unplanned for increase in the second year.
Hire a good solicitor
To make sure you're buying the right property off the plan, and will get everything that has been promised, it is vital you use a solicitor who specialises in off the plan purchases and who will go over the contract and plans with you in detail, including double-checking all the inclusions.
A lot of solicitors don't even read the contract. You might end up with something quite different to what you expected, and having waived your right to vote at the first, and very important, Annual General Meeting.
Important Dates
October 1, 2012 First Home Owners Grant for first-timers buying new property (off the plan or newly built) jumps from $7000 to $15,000. This applies for property valued up to $650,000. Also, the concession threshold for the stamp-duty exemption for new property rises to $550,000, with discounts on stamp duty for new property priced up to $650,000 (the concession reduces 1 per cent for every $1000 spent in that range).
January 1, 2014 First Home Owners Grant for new property reduces from $15,000 to $10,000.
*Check for history of litigation involving the developer. Likewise the builder. Also, how long have they been operating under this particular entity? Some developers and builders will liquidate the company if faced with major defects claims.
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