Queensland is a top state for property investors, due to its strong population growth and demand. Off-the-plan apartments provide investors and first-homebuyers alike an appealing investment option; deposits can be paid upfront before paying the remaining balance upon completion of construction. It’s essential for potential Queensland off-the-plan apartment purchasers to understand any associated risks when making this type of property purchase decision.
Off-the-plan buying involves purchasing an unfinished property before it has been built, usually based on architectural designs or artist renderings. While purchasing off-the-plan offers numerous benefits – including locking in long-term capital gains and accessing tax concessions – before entering any contract it is crucial that research be done on both developer and builder, including their reputation in the industry, their past projects, customer feedback as well as speaking to those who have purchased off the plan properties from them.
Be sure to speak to a mortgage broker or financial advisor in order to assess your borrowing capacity, identify any stamp duty exemptions and concessions, and determine which type of loan would best fit your plans – living there yourself or using it as an investment property.
Consideration should also be given to the time between Contract signing and Settlement, the Statutory Sunset Clause, and Defect Liability Periods. A Statutory Sunset Clause for “off the plan” properties in Queensland requires contracts of sale to settle by certain dates; with exceptions allowed. This allows timeframes for events like council approvals, body corporate formation, completion of development etc.
The statutory defects liability period is the timeframe in which you can notify a developer of any issues found with their property. Please be aware, however, that it may take longer than stated to identify and resolve defects so it would be wise to consult a legal professional prior to signing any contracts.
Notable points should include that purchasing off-the-plan Queensland apartments can help take advantage of the First Home Buyer Scheme, which offers concessions and grants for new homes. TOTAL Property Group can provide further advice if any queries arise in this regard; don’t hesitate to give them a call if necessary! Investing in off-the-plan apartments is a major commitment; take your time considering all available options before seeking professional advice before committing. It may save time and money down the line!