Buying a home off the plan: What should you know?

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It takes just one look at the skylines of our biggest cities to figure out that construction is booming. Apartment buildings are popping up left, right and centre and if you’re taking out your first home loan, buying a unit might be an option you want to consider. And you can even pick up one of these properties before it has been built!

So, what are some things to know about buying off the plan? Let’s take a look.

You’ve got time

Think about it for a second – how long does it usually take for a big apartment complex to be built? It could be weeks, months or even years before you move into the finished product. A benefit of this is the longer settlement period, which can give you plenty of breathing space to sort out your finances and organise a home loan. It even gives you the chance to save money and cut down on how much you need to borrow.

You can lock in the price

Buying off the plan is like snatching a moment in time: While property prices continue to rise, you can snap up the property at the current market price, even if it isn’t completed. You lock in ownership without needing to pay any more further down the line, which can also give you some certainty in your home loan repayments.

There is a catch

As with buying any kind of home, there are a few things to be aware of. For one, there could be a possibility that the development won’t go ahead as planned. Delays, setbacks and even cancellations can stretch out the time you need to wait, meaning it might not be the ideal option for those in a rush. It’s a good idea to sit down and go over the contract carefully to make sure you can recoup your money – after all, you don’t want to be caught out on a ledge if the building isn’t built at all.

You can contact a Smartline Mortgage Adviser on 13 14 97 for home loan advice. Or complete our call request form and we’ll call you!

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