Queensland off-the-plan apartments offer new property buyers an attractive solution, enabling them to secure brand new, quality apartments in desirable locations at predetermined prices and settlement dates. Although the process can be relatively straightforward, it is essential to carefully consider both its advantages and risks prior to making a decision about buying off-the-plan.
One of the key aspects of purchasing an “off the plan” property is remembering that your purchase won’t be complete until construction of your property by its developer has concluded. Your contract typically contains a sunset clause with regards to this deadline if they miss it, should this happen, you could terminate and receive back your deposit as compensation.
As part of this process, it’s crucial that you consult an expert off-the-plan unit conveyancing Queensland solicitor. Your solicitor can review the draft contract, explain its terms, and ensure your rights are safeguarded.
Be mindful of how Queensland law differs when purchasing these types of properties in Queensland, which can vary significantly from standard residential sales. While standard properties use REIQ contracts as their legal contract of sale, off-the-plan properties often come with non-standard contracts drafted by developer solicitors containing additional provisions that cannot be found within REIQ contracts and could have serious ramifications on your legal rights.
One key point to keep in mind when buying off-the-plan property is that buying off-the-plan does carry certain risks, including potential property value losses during construction. Therefore, it is crucial that you conduct adequate research and work with an established developer and building company who have a track record for providing high quality projects on time and within budget.
Note that off-the-plan purchases can often be more expensive than traditional property transactions due to development and marketing expenses being paid up front, and as the property will only be worth what was paid upon completion.
Off-the-plan purchases offer an ideal solution if you have been waiting to enter the housing market but have found saving a deposit difficult. They also present great investment opportunities if that is your aim.
As a first-home buyer contemplating an off-the-plan purchase, it is imperative that you seek independent legal advice BEFORE signing any contracts, particularly those which include sunset clauses. Doing so will enable you to assess if this purchase fits with your financial circumstances as well as eligibility for First Home Buyer Scheme Queensland which grants preference to new builds.