Off the plan buying. With new developments springing up across cities in Australia, and government subsidies for new builds, it’s hard not to be intrigued by the increasing home options available to buyers. On the flip side, we are hearing the headlines of builders going bust, apartment defects, and depreciating assets. Mortgage Broker Chris Bates and Buyers Agent Amy Lunardi take a deep dive into the positives, negatives, and risks to consider if you are looking at purchasing off the plan.
There can be many benefits off the plan buying can bring, whether it be enabling a buyer to get into the property market or get into a specific suburb, however, it is important to understand the risks that are associated with this type of property. Amy and Chris share some of their personal stories from their experiences and discuss how you can protect and educate yourself.
On this episode of the Australian Property Podcast, we cover:
- What is off the plan? What are the common types?
- What are the benefits of buying off the plan?
- Greater Choice
- Small deposits
- Positive buying experience
- What are the risks and considerations when buying?
- Builder risk – builders going bust, building defects
- Liabilities – legal implications of walking away from contracts
- Market shifts – locking in a price for the value to be lower
- Asset performance
- Lack of scarcity – risks when leasing or reselling a property
- Lending & postcode risk
- Sunset clauses
- What you can do to protect and educate yourself
