While buying off the plan property can be an exciting prospect and has its benefits, it also comes with risks.
Advantages of buying off-the-plan
Off-the-plan properties can increase in value, you may experience an increase in value between the day the Contract is signed and the value of the property at settlement. However, there is no guarantee that this will occur, as markets can rise or fall.
Another major benefit is you may purchase an off-the-plan property at its current value on payment of a deposit, with the balance of payment due at settlement. This will provide you the purchaser, with the opportunity to sell your existing home, or organise finance and avoid a bridging loan.
Disadvantages of buying off-the-plan
The property may decrease in value, and pre-contractual advice can make you aware of possible mechanisms being put in place to protect you in such circumstances and to avoid the possibility of needing to find further funds to settle on the property than what was anticipated.
The property you thought you purchased is not delivered or not as you expected.
It is the contract of sale that will ultimately dictate what the vendor developer is required to deliver; regardless of the glossy brochure used by the vendor.
The Importance of Hiring an Experienced Contract Lawyer
If you think the plan in your Contract has been amended, contact us to obtain urgent advice in relation to the changes. Any objection or notices regarding any change, generally have strict timeframes with contracts of sale and therefore delay in objecting and/or enforcing any rights is not in the interest of the party wanting to object.
