Assess the reputation of the property developer

The reputation of your property developer and builder is the best way to minimise the risk of something going wrong in an off the plan apartment. Typically the name they register for the development is a throwaway subsidiary to protect their parent company (common practice and not a concern by itself), so make sure you check both.

How to start your research

• Check the developer/builder websites
  • Check to see how many years they have been around for. You don’t want to be one of the first handful of projects they are doing. To be safe, aim for companies with a minimum of 10-15 years of establishment
  • Check to see if they list past developments on their website and Google those property names to see if they have appeared in the news to see if you should have concerns
• Check to see if they have Google reviews and see if they have legitimate complaints. It is easiest by searching their name through Google maps to make sure it pops up.
• Check websites such as Urban.com.au to see if they have listed other developments they have constructed
• Google in the main / news section of Google and search for phrases such as:
  • Developer/builder name
  • Developer/builder name + defects
  • Developer/builder name + Reddit (This is great to see if anyone has already have talked about them)
• Check to see if they have a parent company they operate under
• Check with the local council to determine that the developer has in fact received DA approval.

Checklist when reviewing the floorplan and units with the agent

• Lighting in each room (Aspect of apartment as well)
• Flooring (timber/carpet)
• Layout: Are the rooms arranged to maximise the use of space and minimise dead space?)
• Size
• Lighting
• Flooring
• Ceiling
• Windows
• Location
• Aircon/ceiling fans
• Strata/council/water

Customisation

The more expensive an apartment, the more likely you have included customisation options, but it never hurts to ask if you can customise anything:

• Colours
• Additional built-in
• Additional cupboards
• Bathroom tiles
• Kitchen tiles
• Carpet vs timber (and type)
• Appliances
• Finishes to rooms
• Additional powerpoint placements

Building facilities

• Gym
• Pool
• BBQ
• Courtyards
• Workspaces

Other

• Number of visitor parking spots
  • Do you need to notify anyone / book to reserve a guest parking spot?
• Do you have a onsite/offsite building manager?

Useful tips when buying off the plan apartments

• You can’t apply for a formal loan until the construction is near completion, this is when the lender sends a property valuation assessor to determine the lender-assessed value of the property. This can be different to the price you actually paid for the property, so be prepared to financially make up the difference. The risk can be higher than purchasing a ready to move in apartment as a lot can change between the time you put down a deposit to secure your unit and the time of settlement of your property.
• Ask for the estimated completion time, but note that this is a very loose guide depending on the reputation of the developer. It is best to check with a solicitor to make sure you understand the specific terms of a sunset date within your sales contract.
• You may have to also pay your stamp duty within a 12 month period of exchanging contracts.