The Risks of “Buying off the Plan”
Posted on: 14.02.2018
Wollondilly, like many other Local Government areas is currently experiencing growth. Wollondilly Shire Council is reminding residents to take care when it comes to purchasing land ‘off the plan’.
Sometimes land is advertised for sale before the subdivision works are complete and the land registered for legal transfer.
*Buying such property is known as 'buying off the plan'. This has different risks and considerations compared with other property purchases. Also, how an 'off the plan' property is sold can vary between developments. In some instances, the developer may be able to vary the design of the subdivision without the buyer's approval, or buyers may need to pay more if the cost of construction varies. Construction delays (eg. due to poor weather or further planning approval required) may also delay when the property is completed.
When you buy off the plan, you are paying for a property where the end product may differ from your expectations. Unexpected delays may result in additional costs being incurred, including rental cost. Delays may impact the return from the sale of any existing properties in a fluctuating property market.
If you are thinking of entering into a contract to buy off the plan, exercise caution and gain appropriate legal and other advice before signing any documents or paying any money.
Mayor Judith Hannan said, “It is important for residents to remember that it can take considerable time for subdivisions to be released. Sometimes it can take years before you can build a home. I think it’s important the buyers do their homework when it comes to “buying off the plan” so their expectations are realistic.”
*Information provided from the NSW Fair Trading website www.fairtrading.nsw.gov.au