When purchasing an off-the-plan apartment, there are definitely some dangers and risks you want to try and avoid.

We often have investors ask us ‘should I buy an apartment off the plan’?  While it can be a good approach for some people when buying an investment or their first home, there are definitely some risks associated with the process that you need to be aware of when entering into a purchase.

1. Pay close attention to the measurements on the plan

Often you will find on a plan the bedroom may be drawn featuring a double bed and study desk or perhaps the living/dining area appears to easily accommodate a large lounge suite and dining table.  This however might not be the case in real life, so ensuring you look closely at the measurements of the room and ideally, inspect the display suite of the apartments, is extremely important to ensure you have an accurate idea of exactly what the ‘space’ is and the furniture it can accommodate.

2. What facilities are offered in the complex

Is there a gym?  A pool?  Perhaps a common area?  These items can add significant value to your investment in the long term so somewhere with good facilities is definitely a drawcard when looking to purchase into a new development.  Also ensure the facilities that you see on the plan or in the marketing collateral are also included in the contract and are locked in as a definite inclusion for the project.

3. Finishings and fittings

The quality of your finishings and fittings will determine how your property ages, which is particularly important when purchasing a property for investment purposes.  Carpets, tiles, light switches, bathroom fittings and kitchen appliances… there is a lot to organise.  Opting for minimalists yet comforting designs rather than current trends, and selecting quality fittings will help your property to ‘age gracefully’ and continue to appeal to investors as the years pass.

4. Ensure you are familiar with any special ‘clauses’ included in the contract

One of the biggest class actions of its kind is about to commence on July 20 after a group of 34 luxury apartment buyers in a 94-unit complex in Sydney pursue a $5m case against the developer who tore up their purchase contracts under the sunset clause.

The controversial sunset clause is certainly something every off-the-plan investor needs to be aware of before they take the plunge with any developer. Basically this clause gives either party the right to repeal if construction is not completed by a given date – in the case of this particular development, it was two and a half years.

Buyers beware, in recent years this clause has been proving a massive loophole which can allow developers to cancel contracts and resell the properties at higher prices – this is not ideal for any investor.  Seeking legal advice is always a good idea before entering into a contract for a new development.

For a safe investment, talk to the Brisbane CBD apartment expert - call Hannah today on 0419 782 133.