Thinking of buying off-the-plan? Don't get swindled with our handy checklist.
Check all of the following:
Market
o Research population growth
o Research employment opportunities
o Research infrastructure spending (public and private)
o Research recent capital growth, average annual growth
Developer
o Contact local real estate agents
o Contact other acquaintances- both industry insiders and outsiders
o Research developer track record – Google/ASIC
o Research previous developments – Google
o Visit previous developments
Development
o Check council records for nearby proposals
o Check approvals in place (with developer)
o Check outlook, aspect of property, fittings, car spaces
o Check valuation against open market
o Check number of sales – query with developer as necessary
o Check body corporate fees, depreciation, etc
o Are deposit bonds accepted?
o Check proposed completion date and sunset clauses
Finance
o Confirm borrowing limit
o Check for government incentives for off-the-plan
o Apply for deposit (if necessary)
o Work out budget – including holding/mortgage costs, depreciation, tax rebate
Legals
o Negotiate incentives (rent guarantees, furniture packages, etc)
o Seek legal advice over contract
o When contract finalised, sign and put down deposit/deposit bond
Practical completion/completion
o Apply for finance
o Check property is as promised – valuation will also do this
o Seek alternative valuation if comes in low
o Settlement: get finance; pay deposit (if deposit bond used); tip in remainder if valuation low
o Seek tenants
