5 Tips To Buying off The Plan As A First Time Buyer

Many buy off the plan as an investment, but purchasing fresh off the production line can also offer real advantages for first homebuyers.

First homebuyers are short on cash and, as a result, have difficulty in finding funds quickly that are required for a finished property with a short term settlement.

Buying off the plan will give a first home buyer time –

time to save for settlement, 

time to plan for settlement, 

potentially time for capital growth prior to settlement 

and time to make all the relevant applications for the first homeowners grant.

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Buying off the plan does not follow the same process path as a typical purchase of an established property does. 

There is ore often than not time-critical steps that cannot be ignored. 

Below is a list of five tips to buying off the plan as a first-time buyer  

1. Get yourself into financial order:

Know your financial position, your borrowing capacity and the lending policies of the bank in relation to different property types and locations. 

2. Do your research:

Don't buy the first property you look at. Understand the median apartment prices growth, vacancy rates, rents, employment statistics and demographics. 

Get to know the area, transportation linkages and current and planned infrastructure projects. 

3. Research the development team:

Who's going to deliver this project? 

What's the track record for the builder, developer, architect and sales agent? Go and visit some of the architect and designers recent projects. 

4. Get proper independent legal advice:

Before singing anything ensure that you have spoken with a specialist property lawyer before signing anything.

5. Understand the time frames:

Ensure that you are fully abreast of all pending timeframes around the delivery of the project and the sunset dates in the contract of sale. 

Following the above steps will assist you in ensuring the best possible outcome at the settlement of your purchase. 

With all best-laid plans there are also risks that need to be mitigated:

• The project may not proceed
• The finished product may differ to what you anticipated 
• Expected capital growth doesn't eventuate or value may ne less than purchase price 
• You can't physically walk through the property you are buying (this last one is something that I struggled with when I first bought off the plan)

For help & guidance through any of the above steps, please feel free to contact an Awesome Lending Solutions broker.