You probably have a friend or family member who has bought an apartment off the plan. Buying off the plan means that the construction company are offering the properties to the market prior to construction. Buying off the plan presents an opportunity to first home buyers to get their foot on the property ladder, without having to move in right away.
However, there are pros and cons to buying off the plan and it’s important to consider both:
· First in, first served:
There is usually no auction or bidding wars with these types of properties. This is a pro, because it levels the playing field. Fixed prices mean as long as you get yourself to the front of the line and have your deposit ready, it’s yours!
· Quick build
Most ‘off the plan’ constructions have strict development schedules. There’s strong incentive for companies to build quickly, because the faster they build, the sooner they receive full payment.
Like with any construction, the project plan is subject to adverse weather, issues with safety, personnel and outside forces. Delays to construction mean that it takes longer for you to move in or start receiving rental income.
· Cookie cutter design
Buying off the plan limits your ability to make custom changes and request unique features to the property. Usually, every building in the complex is built exactly the same. This saves the builder money, but can result in a bland ‘cookie-cutter’ design.
· Construction pain
For every story of success, there’s a horror story that accompanies it. Unfortunately, some projects do fail. Construction companies go bankrupt, or there are issues with zoning or regulation which leads to lengthy court cases. It’s important to check the credibility of the builder before choosing to proceed with the purchase.