Off-the-plan apartments are becoming increasingly popular in Australia as more and more people are looking for a more affordable way to enter the property market. But is buying an off-the-plan apartment really the best option?
Here we take a look at the pros and cons of buying an off-the-plan apartment in Australia.
1. You can often get a discount.
One of the biggest advantages of buying an off-the-plan apartment is that you can often get a discount of up to 10-20% off the purchase price. This is because developers are often keen to sell as many units as possible and so they are willing to offer a discount to buyers who are willing to purchase before the completion of the development.
2. You have time to save up.
Another advantage of buying an off-the-plan apartment is that you usually have a period of time between signing the contract and the completion of the development during which you can save up the rest of the money needed for the purchase. This can be helpful for people who might not have the full amount needed for a deposit upfront.
3. You can customize your apartment.
Another advantage of buying an off-the-plan apartment is that you often have the opportunity to customize your apartment to some extent. For example, you may be able to choose the finishes and fixtures that you want in your unit.
4. You can take advantage of capital growth.
Off-the-plan apartments are often located in areas that are experiencing rapid growth and development. This means that there is the potential for significant capital growth over the course of the construction period. This can result in a healthy return on investment for buyers.
1. You may have to wait a long time for completion.
One of the biggest disadvantages of buying an off-the-plan apartment is that you may have to wait a long time for the development to be completed. In some cases, delays can mean that it takes years for an off-the-plan development to be finished.
2. The final product may not match the plans.
Another disadvantage of buying an off-the-plan apartment is that the final product may not match the plans that were originally presented to buyers. This can be frustrating for buyers who were expecting a certain level of finish or who had specific plans for their unit.
3. You may not be able to get finance.
If you are planning on taking out a loan to finance your purchase, you may find it difficult to get finance if the development is not yet completed. This is because lenders often require a higher level of security for loans on off-the-plan developments.
4. You may not be able to sell
If you need to sell your off-the-plan apartment before the development is completed, you may find it difficult to find a buyer. This is because most people are only interested in buying units that are ready to move into.
5. You may lose your deposit.
If the development is not completed for any reason, you may lose your deposit. This is because the developer may be unable to refund all of the deposits if the project is cancelled.
So, there you have it – the pros and cons of buying an off-the-plan apartment in Australia. Ultimately, the decision of whether or not to buy an off-the-plan apartment comes down to personal preference and circumstances. If you are patient and are comfortable with the risks, then an off-the-plan purchase could be a great option for you.
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