Many Australians have been burned buying properties off-the-plan.

If you are buying “off-the-plan”, this involves buying either land or an apartment that hasn’t been built yet. Although you may be able to view the design and building plans, there isn’t yet a physical property that has been developed.

There are risks associated with developers not delivering on what they promised. There’s also the risk that you agree on a purchase price, only to realise when it comes to the time of settlement that the market has declined and you’re now over-paying for the property.

There’s also the risk that your financial circumstances will change between paying the deposit and settlement time, and you will find it difficult to obtain finance. If you’re unable to settle on the property at the agreed time, you risk losing your deposit.

Despite all these risks, astute investors can enjoy significant benefits when buying off the plan. This is because many developers may sell some properties at discounted rates early on to achieve the required number of sales.

Furthermore, if the real estate market is growing strongly, the price you agree to pay when making your deposit, may be lower than market value by the time the building is complete. This could give you a substantial amount of instant equity in the property.

So if you decide to go ahead with buying off the plan, and are willing to accept the associated risks, contact us and the team at Woodlands are experienced in dealing with off-the-plan purchases and increase your odds of success.

What We Can Do For You

Off-the-plan contracts can be complex, with many provisions to protect the developer. We will review your contract and give you legal advice before you agree to sign any contract.

Some of the elements we will look for in an off the plan include:

  • Carefully examine all the plans for the property and building. These plans may be subject to change if they haven’t been fully approved by the local council. Also, developers can make some moderate changes to the plans, so make sure you know what your rights are in the event that they make changes that are detrimental to you.
  • Once you pay your deposit on the property, the funds will be held in a trust account and invested. Make sure you know who gets to keep any interest accrued on these funds. The fixtures and finishes in the development may be changed by the developer, if you are not happy with the quality of the fixtures and finishes, what rights have you got to withdraw from the contract and receive a full refund of your deposit?
  • The developer will give an expected completion date, but you should know exactly what your rights are in the event that the developer is unable to complete by the expected time.

We’d love to help guide you on your off-the-plan journey and help you achieve success.

We provide our services at a competitive fee and can organise a meeting within a short time frame.


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