55 important questions to ask the sales agent when buying off-the-plan
Off-the-plan apartments and townhouses can offer excellent opportunities to secure a brand new home for a great price. They can also boast state-of-the-art amenity offerings and hard-to-pass-up incentives. However, before you sign any contracts, it's always wise to undergo thorough due diligence to make sure that the offer is really as good as it sounds on paper and you can make your purchase with confidence. To help you with this, we've prepared a list of 55 important questions to ask the sales agent about the off-the-plan property you're interested in.
PRODUCT
Firstly, you'll want to ensure the apartment you're buying has been built using high-quality materials and constructed by reputable builders. It's important to gather as much information and documentation as possible so that you're not surprised with any hidden covenants if you want to build a mezzanine or blockers if you want to apply for a street parking permit.
Questions to ask:
Can I see a comprehensive building material list?
Are the floorplans customisable?
Are there any fixture and fitting upgrade options?
Can I tour some previous projects by the developer?
Who is the developer, architect, interior designer, landscape architect and builder of this development?
Have proper building inspections been undertaken prior to construction?
Can I see a copy of the building report and council plan submission?
Is the development environmentally conscious?
Have low VOC and formaldehyde-free products been used?
Is there a secure carpark, and what is the street parking like? Can I request a resident parking permit from council?
What brand appliances have been used?
Where have the fixtures and fittings been sourced?
What is included/not included?
LOCATION
Other than doing your own research about the location (walking around the suburb by foot is a great way to do so!) – your sales agent will also have access to a lot of information and statistics that might be helpful for your decision-making.
Questions to ask:
Where is the local supermarket?
What are the highlights of the area?
Is there any planned infrastructure within the surrounding neighbourhood?
Is the population of this area growing or declining?
How far away is public transport?
How safe is the area?
LIFESTYLE
living in an apartment can come with many perks, including access to lifestyle facilities, resident lounges and more. Understanding the rules surrounding amenity use and lifestyle within the building will help you to determine whether the property is right for you.
Questions to ask:
What amenities will I have access to?
What are the access hours for the pool/gym?
How often can I book the dining/lounge/cinema?
Is there an owner’s corporation and how regularly will I need to attend meetings?
What percentage of sales have been made to owner-occupiers vs. investors?
Can my friends and family utilise the amenities within the apartment building?
Who is the body corporate/strata manager?
LEGAL
While it's important to always engage a conveyancing lawyer when purchasing a home (and they should be able to add to this list of questions surrounding legalities), here are a few simple questions to consider asking the agent regarding your obligations, rights and restrictions.
Questions to ask:
Will there be a cooling-off period when I can change my mind about the purchase?
Is there a building guarantee?
What happens if there are any issues with the building or my apartment?
What covenants are there on the property?
Can I make changes to my apartment without consent from my neighbours?
What happens if something breaks within the apartment building? Who is liable?
What happens if I need to sell prior to settlement?
What are my obligations as a resident of this building?
What if my apartment doesn’t reflect the renders and proposed plans?
What is likely to happen if the sunset clause is enacted prior to settlement?
Can I rent out my apartment?
Can I offer my new apartment as an Airbnb?
Who will notify me if plans change prior to construction?
FINANCIAL
Before you hand over your deposit, you're going to want to make sure there are no hidden costs and that you will be able to accommodate any annual/ongoing fees associated with owning an apartment/townhouse.
Questions to ask:
Is the asking price negotiable?
Am I eligible for any first home buyer grants/subsidies/concessions?
Does the developer offer any financial incentives?
How much is the minimum deposit?
What happens to my deposit?
What are the annual body corporate/strata fees?
What are the annual rates currently?
What happens if the property depreciates upon settlement, will I still have to follow through with the purchase?
Is there potential for oversupply within this area that could impact the value of my home?
TIMEFRAME
Lastly, in order to plan out the next phases of development, you'll need a good idea around the timeframe of your development. This will help you to know what to pay and when, when settlement will be and the slated completion of your new apartment.
Questions to ask:
At which stage will I pay my deposit?
What date will I need to have secured my home loan by?
When is this development slated for completion?
What happens if my apartment isn’t completed on time?
When I move in, will the development be 100% completed or will construction continue after I’ve moved in?
When will the settlement be?
Who will be my main point of contact throughout the buying process?
Got more questions to add to the list? Let us know in the comments section below.
