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3DA ROOFTOP 30092016 NEW WATER SK2

FAQs

What do I need to know when buying off the plan?

Most off the plan developments will typically require a 10% deposit to secure the property and exchange unconditionally. This can be paid in several ways including cash, bank guarantee or in some cases a deposit bond. A $5,000 holding fee, which is fully refundable if you decide not to proceed, is also required.

For more information on purchasing an off the plan property, contact our project marketing team.

A deposit bond is a certificate/insurance policy that is issued to the developer and acts as a guarantee that should the buyer fail to pay for the property at completion, the developer retains the deposit. Some developers have restrictions on deposit bonds, so you will need to check with them directly to see if this will be.

Deposit bonds are only available to buyers who own existing property, or in the case of a first home buyer purchasing with assistance from parents, one can be secured against their property. For more information on purchasing an off the plan property, contact our project marketing team.

Buying property off the plan has many benefits which are not always available when purchasing a preloved home. Some of these include savings on stamp duty and repairs and maintenance costs, lower power costs (with the installation of energy efficient appliances) and depreciation benefits for investors.

Buyers also have until settlement to pay in full after exchange. This is typically longer than residential settlements because of the length of time for development construction. This then allows buyers more time to arrange finance.

Plus, with a fixed price at the time of purchase, buyers can take advantage of any possible uplift in the market during construction. The extended timeframe to completion can also provide an opportunity for buyers to save more and borrow less therefore lowering mortgage repayments. For more information on purchasing an off the plan property, contact our project marketing team.

As with any property purchase, there is always an element of some risk. When it comes to buying off the plan, the most common include:

  • Delays in completion which can cause inconvenience to buyers
  • Variations in the size or design
  • Potential changes in market conditions between contract signing date and completion date – if the property market is falling, you could be paying more for your property than it’s worth

For more information on purchasing an off the plan property, contact our project marketing team.

Our specialist team always advise people buying off the plan to keep in mind that your property may vary slightly from the brochure or the display suite. This is because the images in the brochure are based on an artist impression and the display suite is set up to showcase the different finishes. Our team will keep you updated on any variations.

Because there are many different apartment types, confirm with the sales agent about the specific size, configuration and finishes for the apartment you are interested in. Request a schedule of finishes and check how accurately the kitchen, bathroom and bedroom dimensions and layout on display match the apartment you are buying. You should rely solely on the information within the contract for sale as these set out the sizes and inclusions which have been agreed upon between you and the developer. For more information on purchasing an off the plan property, contact our project marketing team.

Contracts usually include an estimated time for the developer to complete the project (the sunset date). They do retain some flexibility to extend or alter these time frames whilst still taking all reasonable steps to complete the project as quickly as possible.

If the developer cannot complete the project by the sunset date, then the purchaser may be able to terminate the contract. In those circumstances, the deposit is refunded to the purchaser. For more information on purchasing an off the plan property, contact our project marketing team.

A 10% deposit is payable when you sign the contract, and the balance is then due on completion. For more information on purchasing an off the plan property, contact our project marketing team.

Your deposit will be held in the trust account of the developer’s solicitor or the real estate agent until the project is finished or the registration/ sunset period has expired. This ensures your deposit is fully protected. For more information on purchasing an off the plan property, contact our project marketing team.

A sunset clause is a section in the sales contract that outlines the maximum amount of time the developer has to complete construction. If it’s not completed by this date, the purchaser may be entitled to legally walk away from this contract. In the event of the developer not completing the project by the date of the sunset clause, the purchaser’s deposit can be refunded. For more information on purchasing an off the plan property, contact our project marketing team.

When you purchase an apartment, townhouse or villa you also need to factor in the strata fees. These are paid by the property owner for the management and upkeep of the building and common property. Levies are normally paid quarterly, and the cost varies depending on the facilities and the number of properties in the development contributing towards its upkeep.

The Sales agent for the development will be able to provide you with a schedule of the estimated strata fees for each lot which will give you a breakdown of management and maintenance costs. For more information on purchasing an off the plan property, contact our project marketing team.

Buyers - we're here to help you, too!

  • Finance: Our in house financial services department specialise in home loans, deposit bonds and refinancing.
  • Property Management: We have a dedicated team who can provide a free rental appraisal and property management services once properties are complete and ready to let. We can also provide detailed reports and depreciation schedules which will show investor the benefits of purchasing off the plan.

Our Offices

Our agents are local experts and provide services nationwide. Pop into one of our Sydney offices today and let’s begin your property journey.

Cronulla

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25 KingswayCronulla NSW 2230

Double Bay

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350 New South Head RdDouble Bay NSW 2028

Southern Highlands

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18 Merrigang StreetBowral NSW 2576

Sutherland

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726 Old Princes HighwaySutherland NSW 2232

Taren Point

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6/40 Cawarra RoadTaren Point NSW 2229

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