Off-the-plan apartments in Queensland can be an effective way to enter the real estate market with an eye towards affordability, but before signing your contract it is essential to keep a few key points in mind.
1. Research the Developer: Before purchasing an off-the-plan developer, it’s vital that you conduct extensive due diligence on them, including an investigation of their company history, reputation and track record. Furthermore, speaking with previous buyers is recommended in order to gain more insight into their experience and quality of work.
2. Understand the Contract: As off-the-plan contracts tend to be more detailed than standard REIQ contracts, it’s essential that you take time and read them thoroughly before signing them. They should contain important details, including property specifications, completion date and sunset clause (described further below). For optimal understanding, seek legal advice before making your final decision – getting professional advice might help ensure that any terms that arise are understood fully before making your final commitments.
3. Defects Liability Period: Your contract should outline a clear defects liability period for reporting problems to developers and having them repaired by them. Discuss this point with your builder and work together with legal professionals to develop an action plan to deal with any potential issues that arise during construction.
4. Finance Approval: Before making your purchase, check with your lender to ascertain their requirements for off-the-plan purchases. It would also be wise to obtain pre-approval as this can save both time and money in the long run.
5. Deposit: Your contract should outline the deposit amount, which will be held in trust until settlement. Ensure you understand where and how this money will be held; what would happen if you decide against purchasing; and any applicable interests earned on its investment (if applicable).
6. Settlement Date: The settlement date refers to when title passes from developer to buyer and usually depends upon completion of construction as well as registration of a plan of subdivision, officially creating individual units within an estate.
7. Stamp Duty Concessions: Off-the-plan buyers may qualify for stamp duty concessions or exemptions depending on the location and value of their property purchase. To find out more, contact the Queensland office of state revenue or consult a tax professional.
8. Strata Fees: All Queensland apartments require strata fees to cover common areas like pools, gyms, saunas and Zen gardens. When purchasing off-the-plan properties it’s essential that you check all applicable strata fees prior to signing your contract.
Off-the-plan apartments can offer numerous advantages when compared with purchasing an established home. They’re often cheaper, while still providing exceptional long-term capital growth potential. Furthermore, first home buyers could even qualify for Queensland First Home Buyer Scheme preferences for new builds (if they meet eligibility criteria). It’s essential that before making your decision it takes into account all its potential pros and cons.