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"STOP! Some people buy units 'off-the-plan' - that is, they buy them from the architect's plan before they're even built.  There are a number of special points you should be aware of in relation to buying this way as it's not as straight forward as it appears.  Here's a brief guide on what to look out for plus a few links to some other information resources that may assist."

BUYING STRATA OFF-THE-PLAN

When purchasing a strata property 'off-the-plan' (that is, you buy it before the building has been completed) there are a number of things you need to find out and do.  Here's a list of the main ones:

• Obtain as much information as you can from the real estate marketing company about the estimated completion date, specific details of included fixtures & fittings in the unit and those in any recreation areas such as the gym room, sauna, etc.
• Carefully inspect the display unit taking particular note of the level of quality and inclusions
• Carefully examine the floor plan making special note of whether it has suitable living areas, balcony areas and room location.
• If you plan to live in the property, will the layout suit your lifestyle?
• Again, if you plan to live in the property, will your furniture fit appropriately in the style of the property?
• If the property is for investment, will the layout suit your prospective tenants?
  Generally speaking, if you would be happy living in it then most tenants would too.
• What are the proposed levies?  Do they seem to low? or too high?
• Is it anticipated the levies will increase by the time the building is completed?
  To be on the safe side it might be wise to budget for an increase no matter what the answer.
• How much variation in the size of the unit (as shown on the plan compared to the final size) has the vendor nominated in the Contract for Sale?  (e.g. The floor plan may show a total unit area of 110^m2 but the final size is only 98^m2)
• Is any such variation acceptable to you?
• Are there any proposed restrictions on the use of any proposed facilities?
• Are there any other special conditions planned for inclusion in the by-laws of the scheme?

Comprehensive 'generic' information

If there's anything that could give meaning to the above heading then the information webpage from Lawyers Conveyancing, Victoria on 'Off-the-plan purchases' would have to be it.  There are a few references to some specific Victorian legislation and terms but, overall, it gives a terrific 'generic' overview and explanation of buying off-the-plan and all the twists and turns one might come across.  This is worth a bit of your time....especially if this is an area of interest.

Here's a couple of other information sources on this topic that may prove helpful

• NSW Office of Fair Trading: Buying off-the-plan
• Should I buy off-the-plan?
• Traps in buying off-the-plan
• Buying off-the-plan: The risks & the rewards
• Buying off-the-plan (mortgage consultants article)
• Buying off-the-plan (realestate.com.au article)
• Buying off-the-plan (echoice.com.au article)

Strata Title Terms and Jargon

• Strata Terms and Jargon (to find out what everything means)

Tip - Detailed specialist advice should always be obtained from your solicitor before proceeding with any property purchase, so have a look at the Legal advice information page for more information.

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