Investment property can be one of the most reliable ways to grow wealth. Off-the-plan properties Queensland” and House and Land Package Queensland deals are popular investment options in this state for first-time investors; however, they carry with them certain risks. We explore how such investments could benefit you, while offering advice to avoid common pitfalls experienced by newcomers.
Off-the-plan buying can be more complex than signing a contract and moving in on its estimated settlement date, and seeking legal and conveyancing services Queensland experts is essential to the process. An expert property lawyer will ensure your contract reflects your legal rights while safeguarding against issues like delays by developers, cancellation of projects, and insolvency of projects.
Off-the-plan sales contracts tend to be much more detailed than the standard REIQ form used for established home purchases, typically prepared by a developer’s solicitor and heavily weighted towards favoring them.
Off-the-plan contracts may contain clauses which could be seen as unfair and breach the recent unfair contract reforms introduced in Queensland. A number of off-the-plan contracts contain what’s known as a sunset clause which permits developers to terminate at any time prior to settlement if they determine that a project is no longer financially viable – potentially impacting all subsequent purchasers of property from this development.
Defects liability periods (typically three months in Queensland) present another potential complication; developers are responsible for rectifying defects at their property until this period has expired, when legal advice should be sought as many problems don’t surface until long after this deadline.
Additionally, when purchasing off-the-plan in Queensland you should also be mindful of whether or not you might qualify for stamp duty concessions – this can be checked with the state office of state revenue or legal advice regarding.
No matter the advantages to off-plan buying in Queensland, it is wise to carefully weigh all of your options and seek professional legal and conveyancing services before entering any contracts. A specialist solicitor will be able to review any contracts and advise on the most effective course of action for you and any possible purchases you might be considering.
Off the plan buying is becoming an increasingly accessible way for people to enter the property market in high growth areas such as Brisbane, Gold Coast and Sunshine Coast. But it should not be undertaken without careful thought and consideration of budget and finance options before making your decision. Consulting a mortgage broker or financial advisor could help determine your borrowing capacity as well as assist with selecting an ideal loan structure to suit your situation.