Off-the-Plan Purchases

The solicitors at Clive Mills & Associates are experienced conveyancing solicitors, dealing with purchases of off-the-plan apartments in Sydney and developments in New South Wales, Queensland, Western Australia and Victoria. 

Off-the-Plan Purchase Considerations for Buyers 

Contracts for the purchase of off-the-plan properties are frequently very detailed and complex. We provide legal services for purchasing off-the-plan properties. Our services include providing a detailed written report for our clients to assist in assessing purchasing options.  

Considerations When Purchasing

  • The appeal of new apartments, modern design, and location 
  • Maintenance costs 
  • Tax advantages according to your financial needs and applicable tax concessions 
  • Benefits and advantages to be gained from state first home purchase schemes 

Potential Disadvantages of Buying an Off-the-Plan Property

  • Potential decrease in market value of the property and related financial risks 
  • Potential change in your financial circumstances affecting your borrowing power 
  • Unavailability of building/pest strata reports and other documentation 
  • Possible vendor issues – A small number of off-the-plan developers have failed to meet their obligations to purchasers in recent years.  

Some off-the-plan developers in Australia are reliable with proven track records of delivery according to contract, but there are possible risks. Check with local property experts regarding vendor reputation.  

Financial Considerations in Off-the-Plan Property Purchases

In most cases, finance for off-the-plan purchases cannot be obtained until an apartment block has been completed. 

Please be aware that: 

  • Finance available to you may be less than you had expected, depending on the bank’s valuation of the property at the time of settlement
  • You cannot rescind or terminate the contract on the ground of unavailability of finance
  • You should consider the possibility of the property being valued by your bank at less than the contract price, which may mean you need to find additional funds to settle  
  • You may also be required to pay mortgage insurance

Stamp Duty 

Stamp duty is payable under state laws which vary in terms of rates and first home purchase concessions. We can help you cost your stamp duty payment and identify your entitlements regarding payment of stamp duty.  

Call Us Now  

At Clive Mills & Associates we are here to help. Call us on (02) 9906 8188 or send us an email on cjm@cmalegal.com.au regarding off-the-plan property purchases.  

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