PITFALLS WITH OFF-THE-PLAN BUYING

Over the next 18 months metropolitan Perth will see a record number of new units and apartments come on to the market.
Many of these are near completion or under construction.

Usually these projects are financed with off-the-plan sales, which means the property purchases take place before the Certificate of Title has been issued.
This type of sale has it's advantages.
However, it's very important that buyers read the fine print in these cotnract5s to understand their rights and responsibilities.

In particular, off-the-plan buyers Ned to be very clear about when the settlement period is and the consequences of not meeting it.
If you fail to meet settlement then, under some circumstances, the sellers have the right to cancel your contract and relist the property for sale.

This could be at a higher price than you first agreed if the market months that have been passed between your offer and the settlement date.
If you require a loan to purchase the property, the banks may not be able to offer finance with such a long settlement period.

At a time closer to settlement you would have to reapply for finance it may not be offered.
If you have entered into a contract for an apartment, you have an obligation to settle but you might come unstuck with a delayed settlement.
Increasingly, developers will now accept only unconditional offers.
It's also important to inquire about any sunset clauses in the contract.

The WA Department of Commerce has an excellent booklet on it's website called "Buying land or property off the plan".

(article from REIWA 1/2/2015)

MAKE YOUR OWN DECISIONS AND GIVE IT A REAL GO !!

(Personally be very careful with buying off the plan, you may not get what you signed up for, check that the floor space is the amount you actually paid for, check the appliances that they are the brand stipulated and not a cheaper variety, same as with light fittings, flooring, bench tops and alike)