Thinking of buying off the plan in the ACT? Here's what you need to know

Buying off the plan is a popular option for homebuyers to lock in a purchase at today’s prices with a long lead time before settlement.

This approach is most often associated with apartment developments and is one with strong appeal to first homebuyers.

But is it all weighted in favour of the purchaser – or does the old adage, “buyer beware”, apply?

Wayne Harriden, executive director of project marketing for the Independent Property Group, says due diligence should be integral before any commitment.

“Do your homework on the developer: what is their history, what have they successfully delivered, how do they handle any issues?,” he says.

“Past performance is an indicator of future project delivery.”

His other advice is to really consider how much you need a development with a gym, pool and other amenity.

“It sounds good, but how much will you use those facilities – because you will be paying for them, regardless, in body corporate fees.”

Kristen Porter, general counsel at Geocon, agrees with a due diligence approach that encourages people to get their own legal advice.

“Do your homework and – for peace-of-mind – select a proven developer with a strongly defined and integrated buying process,” she says.

Porter says advantages in buying-off-the-plan include early choices of floor plans and specific positions within buildings, and the option to select carpet and other fixtures.

“But one of the biggest advantages is that it creates the motivation for focused saving,” she said.

“We find that once people commit, they buckle down and focus on hitting their goals.”

OFF THE PLAN

• Due diligence. Check your developer has all necessary registrations and insurances. Review previous developments and web research any media reporting. Have a trusted adviser review any legal documentation and explain the detail.
• Location. This plays just as important a role in apartment or town residence dwellings as it does in detached homes. Choice locations will likely be close to town centres, transport and other amenities.
• Amenities. New developments are reflecting changing lifestyles and enjoy additional features like pools, gyms, and rooftop entertaining. These facilities need to be maintained and that is reflected in annual body corporate fees.

NEW BUILDS ON THE MARKET

GUNGAHLIN

1 ANTHONY ROLFE AVENUE (INFINITY)

PRICE GUIDE: $425,900

1 bed 1 bath 1 parking

COOMBS

WOODBERRY AVENUE (OPUS)

PRICE GUIDE: $439,000 +

2 bed 2 bath 1 parking

 

GREENWAY

219/325 ANKETELL STREET (SOUTHPORT)

PRICE GUIDE: $405,000

2 bed 2 bath 1 parking