Whether it’s a starter home, retirement cottage or luxury townhouse, you need to be careful to avoid disappointment when buying off-plan.
He says when shopping for an off-plan home one should not be embarrassed to ask the salesperson precisely what is and is not included in the advertised price.
This is according to Berry Everitt, managing director of the Chas Everitt International property group.
He says the first precaution is to deal only with a reputable developer or builder who is known for producing quality homes and whose product is there for all to see in other completed projects.
Secondly, ascertain exactly what it is that you’re buying in terms of floor space and finishes and that everything is clearly specified in your building contract.
Writing in the Property Signposts newsletter, he says it is not uncommon for developers to build a show unit that is bigger or better finished than those being offered off-plan.
In some cases, one may find that the advertised price of units actually excludes the cost of finishes.
He says when shopping for an off-plan home one should not be embarrassed to ask the salesperson precisely what is and is not included in the advertised price.
Then, if you're interested in upgrading to more or better finishes, ask how much it will cost for the developer to make these changes.
Thirdly, consider very carefully what finances are charged.
It is often a good idea especially if one’s budget is tight to use the developer's lender, which has already approved the project.
Not only should it be easier to get loan approval, but you may even get a special loan package.