Newspaper article The Daily Mercury (Mackay, Australia)

Tips for Buying Off-the-Plan

Newspaper article The Daily Mercury (Mackay, Australia)

Tips for Buying Off-the-Plan

Article excerpt

THERE are many benefits to buying a residential property off-the-plan but for many, it is a completely new way of purchasing property.

We took a look at eight common questions first-time purchasers of off-the-plan property have.

1. Will the display be identical to my apartment layout?

The display suite will show a level of finishes but because there are many different configurations and apartment types within the one building, you'll need to ask the sales consultant how your apartment differs from the display. Request a schedule of finishes relevant to the apartment you're looking at. Also, ask whether or not the display is the same in terms of kitchen, bathroom and bedroom dimensions and layout.

2. When will the building be finished and when do I pay for it?

Construction times vary depending on the size of the building - the larger the construction, the longer the build time. You'll most likely need to pay a 10% deposit when you sign the contract, with the balance due when it's finished.

3. Who normally keeps the interest from my 10% deposit?

This varies from project to project, however typically the developer receives the interest on the deposit. It is always wise to ask the sales person this question, as often you can negotiate to share part or full payment of the interest with the developer.

4. If I pay a cash deposit is it secure if something happens to the developer?

Your deposit will be held in a solicitor's trust account until the project is finished or the registration/sunset period expires.

5. What is the sunset clause or registration period?

A sunset clause is a section in the sales contract that refers to the maximum amount of time the developer has to complete construction of the project. It also gives the buyer a date when they can legally walk away from the contract if the building isn't finished on time. …

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