Buying off the plan - The first 2 steps
Buying off plan means buying a property before it’s built. It’s a unique way of buying a property that is typically associated with apartments and townhouses. You purchase based on a chosen floorplan and pay the deposit. You then wait for it to be built, which can take up to two years, before you move in. One huge advantage of buying off plan is that you can buy with a very small deposit, sometimes as low as a thousand dollars. You then have years to come up with the loan balance.
The first 2 steps before you start looking
Like any property purchase, there's a certain amount of preparation that needs to happen before you're ready to seriously consider any particular property.
1. Find out your budget
Go to a mortgage broker to find out how much you can spend on a property. They'll take into consideration your current savings, earnings and spending to help you work out what your financial position is likely to be by the time you settle — it might be much stronger than it is now.
Buying off plan gives you plenty of time to get your financial house in order. You might be surprised at what kind of property you can confidently exchange on now.
2. Find your location
Once there’s a budget set in place, decide on your location. That might depend on:
- Where your kids go to school
- Where you work
- Where your friends are
- Whether you prefer to live in the inner city, suburbs or out in the country
Location matters. You want to find a good balance between what you can afford and what you want. Luckily, many off plan developments are being built in Canberra's major town centres, so there is plenty of good food, travel options and entertainment around.
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