Off The Plan Purchase in Maitland & The Hunter Valley

Introduction

An off the plan purchase is a property investment strategy that has become increasingly popular in recent years. It involves purchasing a property before it has been built, based on the plans and designs provided by the developer. This approach has many advantages, including potential capital gains, lower entry costs, and the ability to customize your property to your liking. However, it also comes with some risks that you need to be aware of before making a decision.

Book a Consultation
phoneor call us on
(02) 4933 5111

Benefits of an off the plan purchase

  1. Lower entry costs: One of the biggest advantages of an off the plan purchase is the lower entry costs compared to buying an established property. You only need to pay a small deposit, usually 10% of the purchase price, and the balance on completion, which could be years away. This allows you to secure a property at today’s prices without having to come up with a large sum of money upfront.
  2. Potential Capital Gains: Another benefit of an off the plan purchase is the potential for capital gains. As the property is not yet built, you have the opportunity to purchase at a lower price than the market value when the property is completed. If the property market rises during the construction period, you could potentially make a significant profit by selling the property before or after completion.
  3. Customisation: When you buy an established property, you’re stuck with what’s already there. With an off the plan purchase, you have the ability to customize your property to your liking. You can choose your preferred fixtures and fittings, color scheme, and even the layout of the property. This can be a major advantage for those who want to create their dream home or a property that stands out from the rest.

Risks of an off the plan purchase

  1. Delays: One of the biggest risks of an off the plan purchase is the potential for delays. Construction projects can be delayed for many reasons, such as bad weather, labor disputes, or material shortages. If the completion date is delayed, it could affect your financial plans and lead to additional costs, such as temporary accommodation.
  2. Changes to the property market: The property market is unpredictable, and there is always a risk that the market could decline during the construction period. If this happens, you may find that the property is worth less than what you paid for it, leading to potential financial losses.
  3. Developer liquidation: There is always a risk that the developer could go bankrupt during the construction period, leaving you with an incomplete property and potentially losing your deposit. To minimize this risk, it’s important to do your due diligence on the developer before making a purchase and ensure that they have a solid track record of completing projects.

Tips for a successful off the plan purchase

  1. Do your research: Before making an off the plan purchase, it’s important to do your research on the property market and the developer. Research the location of the property, the amenities in the area, and the potential for growth in the future. Look into the developer’s track record and their financial stability to ensure that they are a reputable company.
  2. Get legal advice: Off the plan purchases can be complex, and it’s important to get legal advice before signing any contracts. A lawyer can review the contract and ensure that it protects your interests, and clarify any legal jargon that you may not understand.
  3. Understand the contract: The contract for an off the plan purchase can be quite different from a standard property purchase contract. It’s important to understand the terms and conditions, including the estimated completion date, what happens if the completion date is delayed, and any clauses related to changes to the property during construction.
  4. Monitor construction progress: Once you’ve made an off the plan purchase, it’s important to monitor the construction progress to ensure that everything is on track. Keep in touch with the developer and ask for regular updates on the construction progress. If there are any delays or issues, you can address them early and avoid any potential financial losses.
  5. Prepare for settlement: As the completion date approaches, it’s important to prepare for settlement. This includes arranging finance, organising insurance, and conducting a final inspection of the property to ensure that everything is as expected. You should also ensure that you have the funds available to pay the balance of the purchase price on settlement day.
Book a Consultation
phoneor call us on
(02) 4933 5111
David Allen, Principal & Maitland Solicitor at Hills Solicitors
Daniel Allen, Maitland Solicitor at Hills Solicitors
David Allen, Principal & Maitland Solicitor at Hills Solicitors

Passionate, experienced solicitors Meet the team at Hills

Hills Solicitors first opened its doors in September of 1894 under the name T A Hill. We continued strengthening our roots in the Maitland Community and later became T A Hill & Son, when our founders son joined the family practice. We then made the change to Hills Solicitors.

We have had a total of 3 offices since those early days in 1894, all of which are a 50m walk from our current office.

Meet Your Team

Get in touch today to see how Hills can help

When you approach Hills Solicitors for any legal advice, we treat you like family. Our valuable clients are members of an evergrowing family that we wouldn’t be here without.
Book a Consultation
phoneor call us on
(02) 4933 5111

Getting started

At Hills Solicitors, we take pride in our over 125 years of experience and adaptability. Our clients can trust that we will continuously evolve and tailor our services to their changing needs. Our longevity is a testament to our ability to embrace new technologies and create cost-effective solutions for all legal issues. With our extensive knowledge and innovative mindset, we confidently assure our clients that we will always strive to exceed their expectations. Trust us to handle your legal matters with a forward-thinking approach and an unwavering commitment to your success.

Step one Get to know each other

When you come to Hills for advice you are never just another client to us, you become part of our large family and it is vital we get to know you.

Step two Understanding your rights

The first step is to help you understand your rights and how you can approach the issues at hand.

Step three Determining your goals

The most important step is understanding exactly what you would like to see at the end of your matter.

Got questions? We’re here to help

The team at Hills are here to help with all of your legal needs, serving Maitland and the Hunter for over 125 years. With a forward-thinking approach, providing practical solutions, for an affordable price — We’re here to help you when you need us.

Book a Consultation
phoneor call us on
(02) 4933 5111
keyboard_arrow_up