Buying A Property Off-The-Plan Early: What To Expect, According To KDD Conveyancing Experts

There are many great reasons to buy an off-the-plan property in Perth in 2024.

In KDD Conveyancing’s guide to buying off-the-plan, we’ll explain what happens when you buy your project, as well as any potential delays you may experience during construction. 

This guide is intended to get you on the right track with your purchasing decisions and so that you can be more informed of the current housing landscape.

What Is Buying Off-The-Plan?

Buying an off-the-plan property in WA refers to purchasing a property before the property is completed and your Certificate of Title has been issued.

It is quite a different process to buying an existing house, and the contracts you’ll need to read and sign may be lengthy and complex legal documents.

The benefit of buying a property off-the-plan means that you can buy into an exclusive development in an area you’d like to live in, and you’ll have the opportunity to customise your home to suit you, choosing your tiling, floor coverings and cabinetry, for example.

Be sure to ask the developer a lot of questions so you have a very clear understanding of the timeline to completion and have thoroughly read through your contract and by-laws.

Buying Off-The-Plan: Why Are There Risks?

If you’re thinking about buying a property off-the-plan in 2024, it would help to understand the risks involved.

In 2024, the Western Australian building industry is recovering from the high demand times faced during the COVID-19 pandemics. During this period of recovery, you may find that construction might not commence  for some time, and the key handover may not happen for a year or two or in some cases, even more.

This might be a risk for homeowners in Perth, having to seek a rental arrangement until their property is ready. If the off-the-plan development hits setbacks, a rental stay could be extended, which will be an unexpected cost. 

As the housing industry begins to return to its pre-COVID capacity, it is a great time to invest in property, with a large number of new builds due to commence construction soon.

Buying off-the-plan: your plan of action

Being as prepared as possible is the best way you can approach buying property off-the-plan in 2024.

Here are some tips on how you can maximise your off-the-plan building process:

• If you live in a rental property while your house is under construction, you may want to be transparent with your property manager about your situation. You may need to renew your lease until construction of your new home is complete.
• It is important to expect delays as a given and keep in touch with the developer, your conveyancer and your finance broker to keep all of your paperwork up to date. 
• Don’t be afraid to keep chasing your developer for updates. If they have a display home built already, go check it out and assess the quality of the building materials and finishings.
• Take the time to explore what you are getting, the drawing and rendering doesn’t always live up to the reality of your newly built home. Read the fine print and specifications within your contract.
• During your final inspection, take your time and check the property with a fine tooth comb. Check for things that are not on your original plan, such as any material compromises or quality issues, for example, if the builders have needed to replace timber with MDF or chipboard during the build, that you weren’t aware of.  Should any issues arise at this inspection, it is likely you will not be able to delay settlement, but your contract should outline the rectification process.
• If you need to move in early and have requested prior possession, be sure to seek legal advice before signing the paperwork and accepting the keys. 

Our View On Investing In Off-The-Plan Projects

At KDD Conveyancing, we believe that off-the-plan purchases and settlements are a great opportunity to build your forever home.

We believe that investing in off-the-plan projects in WA is a great thing for the community because it encourages more amenity buildings, financial schemes, and grants that provide jobs and stimulate our economy in Perth.

Understanding the process involved in off-the-plan building means that you can walk into the project as informed as possible and have a positive experience throughout.

Have A Chat With KDD Conveyancing About Your Off-The-Plan Project

If you’re thinking about buying an off-the-plan property, we’d recommend you contact us at KDD Conveyancing for a chat about Property Settlements in Perth or regional WA. One of our agents can provide you with all the advice you need and outline a realistic plan of action and process after you’ve made your purchase.

It is worth mentioning that we are not able to provide legal advice, as we are not qualified lawyers, but we can provide you with knowledge and scope based on our experience in the WA property industry so you’ll have a better understanding of what to expect when you need to reduce costs and how to manage red tape without experiencing difficulties along the way.

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