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What Is Off The Plan Purchase?

 

Purchasing property off the plan can be an exciting and potentially lucrative venture. However, understanding the full process involved is crucial to ensure a smooth and successful transaction. We will be providing a step-by-step guide on how off the plan properties are purchased which will help you navigate through the process with confidence.

 

Step 1: Research And Due Diligence

 

The first step in purchasing off the plan is making the time for thorough research and due diligence. Start by identifying the market and location that align with your preferences and investment goals. Research the reputation and track record of developers in the area, ensuring they have a history of delivering high-quality projects on time. You should also evaluate the supply and demand dynamics of the market to gauge the potential for capital growth.


Step 2: Engage With Professionals


Getting in contact with professionals experienced in off the plan purchases is essential. By seeking the guidance of a reputable real estate agent who is knowledgeable about off the plan properties, you’ll be able to gain valuable insights and guidance throughout the process. They can also help you find suitable options based on your preferences and budget. Additionally, consulting with a solicitor or conveyancer can help you understand the legal aspects and protect your interests.

 

Step 3: Reviewing The Contract

 

When purchasing off the plan, the contract is a crucial document that outlines the terms and conditions of the purchase. Carefully review the contract and pay extra attention to details such as the proposed completion date, any sunset clauses, cooling-off periods and dispute resolution mechanisms. Seek legal advice to ensure you fully understand the contractual obligations and any potential risks involved.

 

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Step 4: Financing And Deposit

 

It definitely pays off to secure your financing options early in the process. Meet with mortgage brokers or lenders to assess your borrowing capacity and obtain pre-approval for a loan. Off the plan purchases typically require a deposit that usually ranges from 5% to 10% of the purchase price which is paid upfront. Ensure you have the necessary funds available or arrange finance for the deposit.


Step 5: Contract Signing And Cooling-Off Period


Once you are satisfied with the contract terms and have secured financing, it's time to sign the contract. In many jurisdictions, off the plan purchases come with a cooling-off period that allows buyers to change their minds and withdraw from the contract within a specified timeframe. This is usually around 5 to 10 business days. During this period, it's advisable to conduct further due diligence such as seeking legal or financial advice to confirm your decision.

 

Step 6: Monitor Construction Progress


After signing the contract, the construction phase begins. It is important to stay in regular contact with the developer or their representative so you are updated on the progress of the project. Clear communication can help address any concerns or questions you may have. It is also beneficial as you can be instantly informed about potential delays or upcoming changes.

 

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Step 7: Settlement And Completion


Once construction is complete, the next step is the settlement process. Depending on what is specified in the contract, the settlement period can typically range from a few weeks to several months. During this time, your lender will finalise the loan and coordinate with the developer's representatives to complete the purchase. A final inspection may be conducted to ensure the property is built according to the agreed-upon specifications.


Step 8: Handover And Occupancy


When the settlement stage is finalised, the property is then ready for handover. The developer will arrange a formal handover process which is where you will receive the keys to your new property. Take the time to inspect the property and ensure everything is in order. If any defects or issues are identified, notify the developer promptly to have them fixed as soon as possible.

 

Entering an off the plan purchase requires a lot of preparation and engagement with professionals. By following this step-by-step guide, you can navigate the process with ease and avoid any common mistakes. Remember to conduct thorough due diligence, review the contract carefully, secure financing and stay informed throughout all of the stages involved. With proper planning and attention to detail, off the plan purchases can be a rewarding achievement and investment opportunity. 

 

Buying off the plan property can be a daunting process, but there’s an easier way. iBuyNew is your all in one solution that supports you at every stage, from search to settlement. 

We take the pressure off you by doing the research, shortlisting the best properties that suit your needs, connect you to excellent brokers and conveyancers and keep you updated throughout the construction process, all the way until you get your keys. Book a FREE discovery call today or call 1300 123 463.

Published on 4th of August 2023 by Davina Deluao
Davina Deluao
Davina Deluao

Davina graduated from Swinburne University in 2018 with a Bachelor of Arts, majoring in Journalism. Through travelling and studying abroad in NYC and LA, her interests in property and design grew and became a strong pursuit. Davina has been writing for iBuildNew Group since 2019.

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