Off the plan purchase details ?

[floplo]

So in the mid-to long term future there is a good chance I'll actually buy an apartment. Since I still might qualify for First Home buyer grants (ergo have no clue about buying real estate) I am curious what the deal is with off-the-plan purchases. Are those 'Take it or leave it' offers, i.e. do you have to sign their contract without any changes ?

Or can you negotiate about
- price
- deposit
- sunset clause / delay 'punishments'
- apartment furnishings / kitchen / bathrooms
- parking spots (with or without, on a separate title, etc)
- Strata fees
- anything else ?

thanks

[Nathan]

So in the mid-to long term future there is a good chance I'll actually buy an apartment. Since I still might qualify for First Home buyer grants (ergo have no clue about buying real estate) I am curious what the deal is with off-the-plan purchases. Are those 'Take it or leave it' offers, i.e. do you have to sign their contract without any changes ?

Or can you negotiate about
- price
- deposit
- sunset clause / delay 'punishments'
- apartment furnishings / kitchen / bathrooms
- parking spots (with or without, on a separate title, etc)
- Strata fees
- anything else ?

thanks

Of all of those, pretty much only the furnishings - and even then you'll be limited. We were able to get some layout and fitting changes to our bathroom / laundry, but some developers may not allow it.

Strata fees will be set at your first strata meeting, based off a rough budget. The committee can reassess that budget if they choose, and also change how the fees are calculated (to be put to vote). Any strata fees a sales agent tells you will only be an estimate.

[AG]

Having witnessed other people get into the OTP stuff and being an investor myself, all I'll recommend is stay away from off the plan apartments! The developers often have very fixed terms and clauses, and often selling at a premium price for being new.

Starting to see this already in Melbourne and Brisbane where the valuations on newly completed apartments are significantly less than the contract price due to the oversupply from new construction, forcing the buyers to stump up the difference or forfeit their deposit (at which point the developer often has the right to sue the buyer for not completing the purchase).

The fact that some banks have imposed lending restrictions on residential lends in all the major CBD postcodes should provide a clue as to their stance on the issue.