Buying before a home is built can have advantages – but recent events are a reminder that you’re also placing considerable trust in the developer.
Property developer Bathla Group has entered voluntary administration owing billions of dollars, leaving some customers facing uncertainty.
For buyers whose projects haven’t started, that includes questions about whether deposits will be returned. Others are wondering whether their partially completed homes will be finished.
The trade-offs to consider
Buying off the plan can be attractive because you may:
- Secure a property at today’s price for settlement later.
- Have more time to save before settlement.
- Get a brand-new home with modern features.
But there are risks too.
The finished property may differ from expectations, its market value could change before settlement and construction may be delayed. As the Bathla situation highlights, developer problems can create another layer of uncertainty.
That’s why researching the developer, understanding the contract and getting independent legal guidance can be important before signing.
Finance deserves early attention as well, because your circumstances, borrowing capacity and the property’s valuation could change before settlement.
Considering an off-the-plan purchase? A finance conversation early in the process can help you understand your options and prepare for settlement.
