Buying Apartments off the plan
Buying an apartment off the plan is a similar process to houses, although there are some key differences to be aware of. When buying an apartment off the plan there will still be strata costs associated and your developer will provide you with the schedule of strata fees. This schedule may or may not include the sinking fund fee. The other main consideration with apartments compared to houses, is that an apartment will typically take longer to complete than houses. When buying a house off the plan the construction is likely to take between 6-18 months, whereas apartment construction consists of the whole building and multiple units and therefore can usually take between 2-5 years to complete.
Buying off the Plan in Melbourne & Victoria
If you’re looking to buy off the plan in Melbourne and Victoria it’s important to be aware of new laws passed by the Victorian Government in 2019. The Sale of Land Amendment Act 2019 (the Act) was passed to restrict developers to only be able to use a sunset clause with written consent from the buyer, or permission from the Supreme Court of Victoria.
These laws are great to know when looking to buy off the plan as they are intended to protect you as the buyer from your contract being cancelled intentionally by a developer with the intent to re-sell the property at a higher price.
Buying off the Plan in Sydney & NSW
Similar to Victoria, the NSW Government has passed changes to the laws relating to buying off the plan contracts in Sydney and NSW. The Conveyancing Legislation (Amendment) Act 2018 and Conveyancing (Sale of Land) Amendment Regulation 2019 (NSW) have made changes to further protect buyers from 1 December 2019.