In a competitive market, buying off the plan may be one way of securing a property. However, you should still do your homework and consider the following:
- When will the project be completed?
- Who is holding your deposit?
- Is the developer asking a fair price in this market?
- Are there going to be any additional changes to the original plans?
- Who has the developer signed up with to do the strata management?
- Are there any exclusive use and special privilege by-laws that will affect your use and enjoyment of the property?
- What will the strata fees and levies be?
- What quality of finishes, type of fixtures and appliances will be installed?
You should also ensure that a copy of the builder’s certificate of insurance is attached to the contract of sale. This will ensure that you are protected in the event that work is not completed on the project and/or certain breaches occur in relation to the work carried out by the builder.
Therefore, potential buyers should carefully review the contract and conditions and restrictions before signing.