Red flags for property buyers considering buying off the plan
Property buyers have been warned of the hidden dangers that come with buying an apartment off the plan.
Potential home seekers have been alerted to avoid buying cheap, cookie cutter units that are typically sold off the plan.
Michelle May, the Principal of Michelle May Buyers Agents, said some cheaper units sold off the plan were risky purchases because too many corners may have been cut to keep costs down.
Prospective buyers must remember that when buying off the plan, you are investing the future of the whole building, not just your chosen apartment.
“Developers are in it to make money, pure and simple. Unfortunately, this can lead to cutting costs (and often corners) wherever possible to increase their return,” Ms May said.
“You only have to look at two recent stories, Opal Tower in Olympic Park and the more recent Mascot Towers, to see how bad things can go for residents when the building hasn’t been built, inspected or appropriately certified.”
Speaking to The Daily Telegraph, Ms May said buyers had less confidence as a result of rising interest rates and the ongoing election campaign taking away their attention from the property market.
She went on to say that buyers of units off the plan would struggle to earn back their money if they had to sell in the future.
“People buying apartments off the plan usually think it’s cheaper and go for the lowest price. The reality is that the quality build of these newer off-the-plan apartments just isn’t good.”
“Visually it might look okay, but a lot of these new apartments aren’t built to stand the test of time. A lot of people who I’ve spoken with often complain about the noise they hear between the walls or the high turnover of other tenants.”
“If you’re considering buying new or off the plan, make sure you work with a specialist property lawyer, not just your run-of-the-mill conveyancer. The lawyer will help you understand the many ins and outs of the contract, so you know exactly where you stand.”
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