Off-the-plan unit property purchases are quite popular with first time buyers and investors. With the increase in supply and demand in some capital cities, it is important to do your research before signing that sales contract.
Pre-purchase property checklist: A buyers guide to off-the-plan units
From a Valuer’s perspective, here are some common considerations that you should do your homework on before purchasing an off-the-plan unit:
- Proximity to services and amenities
- Oversupply or undersupply of units in the vicinity
- Noise pollution from main roads, trains, airports and flight paths
- Proximity to non complimentary developments and power lines
- Future loss of views - watch out for neighbouring developments
- If possible, look at previous developments they have completed
- If available, research past strata reports that the builder may have completed
- Consider the statutory warranty the builder must offer. State government provisions vary from state to state
- Where possible, research the quality of materials, contractors and suppliers the builder uses.
- Is the local property market up or down at the time of purchase?
- Research surrounding established properties and median sale prices in the local area
- If there are incentives or rebates offered as part of the sales contract, ensure you are not actually paying for them in the final price, it may be a marketing gimmick.
Do your research; make sure you get what you are paying for.
Keep in mind you will most likely be paying a premium for the preference of purchasing a brand new property, but as soon as the occupant moves in the “New” factor starts to diminish. Be sensible and really consider the value of the property as an established one.
This is only a small sample of considerations that we recommend you look at before purchase, please contact us if you would like to learn more about our property valuation and advisory services.
