NEW apartment developments are on the rise, as Australians become more used to the idea of strata living; especially when it means they can live closer to the CBD.
Young buyers are also attracted to brand new properties in some of the eastern states, where newly constructed homes are the only ones still eligible for first homeowner grants and other incentives.
Many of the new developments offer buyers the chance to buy off the plan; or before the block has been built.
It pays to be wary of hidden traps and any terms and conditions you may have overlooked before taking the plunge and buying not just sight unseen, but building unconstructed.
First, let’s take a look at some of the brighter factors involved.
After paying a holding deposit, you usually don’t settle until the property is completed, which can be a couple of years.
There is a lot less pressure involved, knowing that you have more saving time to build a good mortgage buffer at the beginning of your repayment period, and also for upfront extras like stamp duty.
You have secured your new property at ‘today’s price’, but a rising market will mean that by the time you settle, you may have already made some equity.
You get to have some input into the building process and choose certain aspects of the layout of your apartment. If you get in early, you can also choose where in the building you want it to be located.