Buying Brand New -
Published: 30 August 2006.
(Off The Plan)
Buying brand new means buying off the developer's plan before the complex is finished. Sometimes it means buying before the complex has even been started. Here are some tips.
- Know your builder. Inspect other completed developments. Talk to the managers of these complexes about the builder's product.
- Have your contract checked to see if it includes looking after things like paths, driveways, fences, cupboards. These "extras" could cost a lot of money.
- Developers may fail to make adequate provision for storage for managers, so remember to ask about storage. Don't assume your needs will be understood by the developer.
- If you want to change anything in the contract, then get in early. If unit sales have already been made before you buy the management rights, then the developer may not agree to the changes because it might jeopardise the sales.
Developers have to make full disclosure of the terms on which they are selling units and these terms include the terms of the management rights. If you want to change any of these terms, then the developer might be required by law to give all the previous purchasers an opportunity to withdraw from the contract if they feel they are being materially prejudiced by the changes.
Developers are, of course, very reluctant to do this. - Beware of agents overselling unit owners for expected returns. You might be the only one left to pick up the pieces of shattered expectations.
- Ask what the selling agents are saying to purchasers and look at the material they are giving to purchasers and form your own opinion as to whether or not you will be able to live up to the expectations that have been set by the agents.
