A guide to buying and moving into a new built apartment

With the property market continuing to grow, it is no surprise that more and more Australians are looking to purchase strata apartments as an affordable alternative to purchasing land, particularly for those looking to buy in close proximity to their city centre.

Soon to be built (known as off-the-plan) and newly constructed apartments comprise an overwhelming majority of listings for sale. And for some, the lure of a new build with its shiny new appliances, modern interiors and fresh paint is far too enticing to pass up.

So, what should you know about buying an off-the-plan and before moving into a newly built apartment?

1. Expect delays. Issues can arise during the construction period, which may prevent the developer from completing the build on time. Whilst most Contracts will contain a date in which construction must be completed by, there are often provisions which allow this date to be extended in circumstances outside of the developers control. A good example of this is the recent floods in NSW.

2. CGI photos and marketing material may lead to disappointment. Usually, the contract will allow a developer to use their discretion when it comes to finishes and fixtures, layout and landscaping. This means that these items may change between the time you sign the contract and the time you get the keys. If, for example, you have your heart set on that Miele cook top and oven, be sure to make this clear to your solicitor/conveyancer so they can try to negotiate this in the contract.

3. Brace yourself for defects. Defects are a normal occurrence with most new builds, but you should be prepared. Contracts usually allow the developer to call for settlement, even though your apartment does not yet look like the show room. In these circumstances, you are usually allowed to raise defects within a specified period after settlement.

As a secondary measure, for those buildings 4 storeys or higher, developers are required to lodge and pay a building bond with NSW Fair Trading, equal to 2% of the building contract. The building bond is held for up to 2 years as security, pending compliance by the developer of defect inspections and rectification works.

If you are looking to buy an off-the-plan or new build please get in touch with one of our property lawyers or conveyancers who would be happy to discuss any questions you might have about the process.

Photo 211050456 / Guide Buying Home © Teacherphoto Photo | Dreamstime.com