When considering buying off the plan townhouse, we must take into consideration both pros and cons of this option to make the best judgment.
The main reason why this property buying option is getting more and more popular is that fairly good price you get for a brand new home. The thing with buying off the plan is that it is in developers interest to get the first funds as quickly as possible to ensure the financial stability. That is why the first off the plan townhouses are the cheapest and chances are big that you will be in a good position to pick the best home developer offers. The price is fixed so that means you can even profit from buying this way if property value goes up.
Flexible payment methods
What is great about purchasing your dream home off the plan is the flexibility of payment. There is buy now and play later method, which includes only small deposit usually prior to signing the contract. Since the price is fixed, you won’t have to deal with unnecessary math. You can also choose from different payment options and go for the one that suits you best.
More time for making plans
Buying off the plan is great because it not only allows you to deal with your finances more effectively but also with your time and preparations for moving in. As construction of your new townhouse takes some time, you can save more money and it gives your bank more time for loan approval and raises the chances of getting it.
Since buying off the plan is buying a property before it is built and ready for moving in, we buy it based on the plans and provided information only. Since we can not see and feel the space we are buying, we must be ready for an element of surprise when it comes to how will our townhouse look like. Since developers have more-less freedom to go for the alternatives in choosing the material and ways of building after you purchase the property and sign the contract, there can be some unpleasant surprises such as low quality. What we can deal with here is our expectations not being met.
Construction competition past the due date
Another problem many buyers face is delayed house competition. Due to financial issues developers sometimes face, there is a possibility of not meeting the construction due date which can delay your plans of moving in.
Cancellation or bankruptcy
These are both probably the worse case scenarios, but both can happen. Cancellation of your contract under special circumstances is possible, so there is a chance if you haven’t studied the contract to a detail, that your contract gets canceled. Many buyers also risk dealing with the bankruptcy of the builder. What can happen here is simply not getting your townhouse at all and there is a chance of not getting the deposit back as well, which is not a pleasant experience.
Read more about the 6 things to consider when buying an off the plan townhouse in Australia.
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