No-Nonsense Guide to Buying Off-the-Plan
There is a lot of information out there about buying off-the-plan homes - and not all of it is easy to understand. Here is a no-nonsense guide that will help explain it for you.
♦ What is buying off-the-plan?
Buying property off-the-plan means purchasing a property before it has been built. You can see the land, and the plans and drawings of what it will look like, but there isn't a house to see.
♦ Why buy off-the-plan?
In recent years buying off-the-plan has become quite popular, particularly for investors. The concept has distinct advantages for the purchaser.
From a purchaser’s point of view, you can lock-in the price of the new home at today's price, and by the time the building is completed the value has most likely risen.
There are also many other benefits like Stamp Duty Savings, depreciation expenses and tax benefits, as well as the capital growth.
♦ The contract for off-the-plan properties.
Where you are buying house and land as a package, there are 2 contracts issued, one for land and the other for the house construction. We only work with builders who include a Turnkey fixed price.
The build contract issued for properties we market are HIA approved contracts and include the details on the design of the house, colour schemes, standard inclusions, and upgrade inclusions, the payment schedule and much more.
• Both land and build contracts must be signed and returned to effect "exchange of contracts“.
• 10% deposit for the total price is paid by the purchaser.
♦ What is a Turnkey Build?
A turnkey build means everything is included in the fixed price:
- Site costs
- All fixtures
- Floor and window coverings
All inclusions will be listed in the building contract.Once completed, you can simply turn the key and it is ready for tenants to move in!
♦ Quality Builders, Quality Products
We work with only a handful of builders that offer quality fixed price turnkey homes in high growth areas with high rental demand and low vacancy rates.
They offer a 6-year structural warranty, and there is a 3-month maintenance warranty after it is handed over to you to ensure any niggling details are taken care of.
♦ How Long does it take?
Construction will only begin once the land is registered and settled with you as the owner.
Once construction begins, it is normally a 16-26 week process and payments are 'drawn down’ from the lending financial institution to the builder in arrears as each stage is complete.
The stages are similar to this:
- Pouring the slab,
- Frames and windows
- Brickwork and roof,
- Kitchen and lockup
- Practical Completion
Final payment is due after Practical Completion stage and the final inspection. The house is then settled, and keys handed over ready for tenants to move in.
♦ I'm still not sure about it all.
Talk to us, we will gladly answer all of your questions.We are here to walk through the process with you from enquiry to handover.
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Oliver Myers Real Estate Gosford is a long standing and well established leading Central Coast Business serving the real estate needs of an ever growing population in an highly efficient and customer focused manner.
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