Purchasing off-the-plan means you are entering into a contract of investing in a property that has yet to be built. While there is sometimes a display suite, buyers are ultimately basing their decision from surveying floor plans, designs and renders, rather than the finished product.
Looking for the right property for your future home can be an exciting journey but it is important to retrieve as much information on the property as possible. Just like any type of investment, it requires copious amounts of time and effort poured into researching and understanding exactly what you are getting into.
Below are a list of our top five questions we recommend asking a sales agent during your research phase.
1. What previous projects has the developer completed? And who will be building the project?
Starting off with understanding the company responsible for the development, it is useful to research the developer and builder to learn about previous projects delivered and whether they have a proven track record.
As a buyer investing hard earned money, you would want to ensure that your future home is in safe hands. A developer that has a good reputation with delivering projects to the highest standard is essential in bringing your future home to fruition. If the developer has completed projects, you can visit these developments to get a feel for the end product. Most times, the developer has appointed a builder and will disclose this to you. In the case of Cube Developments, our new construction arm, Cube Constructions, will be responsible for bringing our future projects to life.
2. What is the completion date of the property?
Aside from finding out the background of the developer and builder, it is also important to ask when the home will be ready for settlement.
When you purchase an off-the-plan property, it may take several years for the project to be built, so having a settlement date in mind is important for future planning around finances and making sure you are ready to move in.
3. What are the Body Corporate (BC) fees?
Buying a property, whether it be a townhouse or apartment, generally comes with a Body Corporate (BC) or Owners Corporation – the managing body that ensures the common property or common areas remain smooth functioning at all times.
Common areas, such as facilities, gym, gardens, pool, or any other shared spaces in the building that residents have joint ownership over, are regularly maintained by the Body Corporate on behalf of owners. The fees and levies typically go toward the day-to-day upkeep of the property, such as hiring cleaners to take care of the property cleanliness, building insurance and maintenance of common areas.
Body Corporate fees are important in ensuring the premises of the property are maintained and in good condition on behalf of all the residents, so knowing what this is per quarter or annually is important to avoid any hidden costs.
4. What amenities are included in the development?
This question always comes in handy when it comes to narrowing down your list of property options. Depending on your personal preferences and what you are looking for in your ideal home, it is always helpful to know what is included or excluded with the property. A development with more amenities will have higher Body Corp fees, so it is important to settle on a property that is tailored to satisfy your needs.
5. Is the contract price fixed?
Some off-the-plan contracts have a fixed price clause where the price of the property will not change during the life of the project or for some other fixed period. Some contracts may, however, have terms that allow for increases in building costs. You should consider what will happen if building costs increase and whether you are in a position to accept the risk of price increases.
Want to find out more about our off-the-plan properties on the Sunshine Coast? Contact us at info@cubedevelopments.com.au