10 Tips for Buying an Off the Plan Apartment
Are you looking for an Adelaide apartment you can call home? One of the things you need to consider is whether you want to buy an established apartment or an off the plan apartment.
While buying an established one means you get what you see, off the plan apartments simply means signing a contract to buy an apartment which has not been built. Real estate in Adelaide has seen a dramatic increase in the number of off the plan options. The Adelaide City Council is providing stimulus for this type of real estate investment.
Off the plan apartments are a great choice for securing a high value property with low capital outlay (usually 10 per cent). Investing in real estate through property development can be financially valuable to you.When Adelaide properties are being established, developers are looking to cover their initial financial requirements and this can be quite beneficial to you.
Not only can you secure an Adelaide apartment at the best price possible, you also have time to plan your move and payments over the development period besides benefitting on tax depreciation. Adelaide real estate has long been considered a stable investment, particularly for first home buyers.
Buying off the plan gives you the opportunity to watch your capital investment grow in value.
As leading Adelaide Real Estate agents, Ouwens Casserly has learned many of the challenges a first home buyer or investment property buyer have when buying off the plan.
Buying off the plan can be tricky and you might want to take these 10 important tips into consideration:
- Reputation of developer
Research the developer and builder to make sure they have a good reputation. Check their website, inspect previous developments and speak to previous clients.
- Research the market
It’s wise to look into what the property market is like and the trend of the interest rates before you enter into any contract.
Check if there is potential for growth in that area. Are there essential amenities and facilities close by? After all, you would want your investment to grow in value over time and location plays a big role.
Typically buying an off the plan apartment will give you time to save and arrange finances before settlement. Check with your bank and lenders when is the ideal time to approve loans which is typically when the property is close to completion.
Make sure that your situation stays relatively stable
between paying the deposit and applying for pre-approval.
- Government concessions
In South Australia you are entitled to an off the plan apartment concession which provides partial to full stamp duty concession. It’s best to check with Revenue SA for more details. The Adelaide City Council is also providing value to the real estate considerations. First home buyers will benefit from many rebates that are on offer.
- Home owner warranty insurance
Also known as Building Indemnity Insurance in South Australia is the legal responsibility of the developer before they enter into a contract for sale for off the plan property over $12,000. It may be legally required and it’s good to check this with your developer. It basically protects the subsequent homeowner from losses which may occur from non-completion of building work and loss of deposit should the developer die, disappear or become insolvent. This certificate needs to be attached to your sales contract.
- Finished home
When you buy off the plan, you really don’t know what your home will look like once it’s ready. You have plans and designs to guide you but it also helps to check out display apartments which will give you an idea about your new home. The Ouwens Casserly Projects team are experienced real estate property developers. We have mnay tools available to assist you with the best way to finish and furnish your brand new apartment home.
- Customise your apartment
While the developer has a lot of flexibility in how the project is completed, some contracts will allow buyers to customise their homes within structural constraints. This usually means you can choose between fixtures and fittings or make changes to colours, appliances and interior finishing.
- Strata title
It’s important for you to know that when you purchase an apartment you will be buying a Strata Title which applies to properties that have shared common areas. As a result, check to see how the building will be managed, whether it will have satisfactory by-laws or if the developer will impose certain restrictions on common areas. Also make sure you have a proper understanding of the costs of running the building and other levies.
- Review the contract
Check your contract to see what is included in the price, what the deposit amount is, who ends up with the interest earned at settlement, cooling off periods, stamp duty, warranties and end date of completion.
Ouwens Casserly Projects is South Australia’s largest privately owned residential and development real estate agent.
If you are looking for an Adelaide real estate agent, then we can help you. Are you interested in understanding more about the first home buyers grant and investment properties?
Born and bred in South Australia, The Ouwens Casserly Group is responsible for over 1000 residential and development real estate Adelaide sales per year.
If you are a first home buyer or looking to downsize to apartment living speak to the OC Projects team today to find out how we can help you with your Adelaide Real Estate investment.