Investing in off plan developments can be a very wise decision. It will save you a lot of money. But there are some areas that you should be conscious of. The property will not be fully developed and ready for occupancy. Here are some imperative checks that you must conduct to be sure of the investment.
- Check the facts of the proposition with the developer or real estate agent. Generally, as more properties get sold, the price of the units appreciate – however this may not always be the case and varies depending on the number of phases the development has. Check the completion schedule and timeline of the project. Make sure you have time in your stride when you choose a property.
- You must be very particular about the paperwork and all fact-finding missions you need to embark on. You should explore your financing options, the potential of growth or value appreciation of the development over the years and hence the return, depreciation and you should also get preapproved for mortgage if you want.
- Obtain a draft or copy of the contract from the developer or real estate agent and read it thoroughly. Clarify any clauses that you don’t understand. Focus on the cool off period, plan disclosure, deposit details, warranties, inclusions, finance information, defects, stamp duty, completion schedule and any property specific detail or disclosure that matters.
- As you consider the properties listed by the real estate agent or developer, conduct a background check of the development company. Explore their history – your real estate agent will be able to help you find out more about the developers, architect.