The process of buying your first home is an exciting time, but it can be a little overwhelming too. There are many elements that need to be considered and covered off. It can be difficult to know where to begin, what steps follow and what to look out for. Buying off-the-plan can be a great choice for first home buyers but like any big decision it’s important to do your research and understand what you’re getting into.
Here are 5 key things to consider when ‘buying off the plan’ as a first home buyer.
1. Pre-Approval
Have your finance pre-approval ready and set yourself a budget as a goal toward your first purchase.
2. Smaller deposit
When buying off the plan often a smaller deposit is initially required. So, when you sign a contract you generally only pay around 10% deposit with the balance payable upon completion. This gives purchasers time to prepare their finances and often build a much larger deposit.
3. Research
Do your research on the developer and design team’s reputation by looking into their previous projects, track record and the project team. Then rest easy knowing what you can expect from a well-respected and well-known builder, who is building and designing your home.
4. Financial incentives
When buying off the plan there can often be a few financial incentives; first home owner grants, stamp duty concessions and depending on the developer, often some free upgrades or cashback offers.
5. Consider your timeframe
The whole process of buying off the plan does have a slightly longer timeframe, so be sure to account for any delays or time lags and ask yourself these important questions:
When does my finance offer end?
When does construction start?
When does the property settle?
Will I need to extend my rental period?
Hopefully, these few helpful tips have given you a better idea about buying off the plan and could help make the process a little less daunting. If you have any further questions, please get in touch with the OC Projects team and we will be happy to assist you.
