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Buying off the plan

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#1 lulu_kimmy

Posted 22 March 2020 - 08:30 PM

Hello lovely people. Just after any advice from those who have bought a townhouse off the plan? Flying a bit blind & just wanting any hints/tips/experiences etc. I am looking at one in the ACT suburb of Wright. Many thanks for all the help so far in my previous thread. PS if anyone is interested happy to PM brochure etc to have a look.

#2 bondgal

Posted 22 March 2020 - 09:22 PM

My two cents... now is a terrible time to buy anything off the plan. I’m not sure what your protections would be if your builder goes broke but given the current situation and the impact that is likely to have on the economy from now for at least the next 18 months, I wouldn’t touch anything off the plan. Again in the current situation it is not unlikely that there will be a decline in property values, if you don’t have to purchase right now, then wait, as frustrating as that might be!

Edited by bondgal, 22 March 2020 - 09:23 PM.

#3 Dianalynch

Posted 22 March 2020 - 09:40 PM

We have bought off the plan, so have friends of ours, but we wouldn’t do it in the current climate. House prices are forecast to fall, and your property may be worth less than it is now when you settle, creating a finance issue. The even bigger risk is that the builder goes bust in the meantime due to the recession we’re either already in or will inevitably have.

too much risk at this point in time for me. I’d only buy an existing property, and if you have an exiting property I’d sell then buy.

it’s maddening isn’t it? We were about to buy, then this sh*tstorm happened. Mostly though we hope everyone keeps safe and well.

#4 Cimbom

Posted 22 March 2020 - 09:44 PM

Absolutely don't buy off the plan now

#5 CallMeFeral

Posted 22 March 2020 - 09:48 PM

Ditto what PP said.
We've finally found a house that checks all the boxes, after about 12 months of looking. But I'm baulking at buying right now. There's no telling where the economy will be at.

#6 Murderino

Posted 22 March 2020 - 10:52 PM

I’m not buying off the plan but I sold my house about four weeks ago and I’m moving to a rental this coming weekend.

The kids and I had decided to buy a block of land and build. I am supposed to sign the land contract tomorrow. The kids and I had chosen (and slightly modified) a plan and I’ve been going back and forth with the company on what I want.

I have to explain to the kids tomorrow that we can’t go ahead. I’m not concerned about my job (as I’m in an essential service) or finances (I will have 3/4 of the house and land cost in cash upon settlement) but I am worried that although I was going with a large national builder I will end up with a half built house and a collapsed builder.

We’ll just have to try and find a house we all like - we have had trouble all agreeing. We will stop looking for now since we’ve just signed a 12 month lease.

#7 Moo-me

Posted 22 March 2020 - 11:38 PM

Ive done it and would never do it again.  18 months of stress worrying about what the market value will be at time of settlement, potential changes in circumstances, getting a mortgage after already putting down 10%.

Never again... for me.

#8 Murderino

Posted 23 March 2020 - 06:01 PM

Well we are all very sad but I’ve emailed everyone who needs to be advised so it’s done now. I feel relief at not being caught up in a disaster!

#9 lulu_kimmy

Posted 24 March 2020 - 05:30 PM

My one concern is - the property is valued at $454,900. What if in the time between I sign a contact (IF) & when in 10-12 months later when it’s time to settle  the market takes a hit & the property is valued at less than the cost. I take it that means I would need to come up with the difference?

#10 qak

Posted 24 March 2020 - 05:54 PM

Yes, you would need to fund the difference between whatever deposit you are paying now, and a potentially reduced loan from the lender when it is settlement time.

#11 lulu_kimmy

Posted 24 March 2020 - 09:47 PM

Damnit! Thanks all for the advice & sharing. I really want this townhouse but I believe what DianaLynch says - we are headed for a recession, if we aren’t already in one & I am worried about being left high & dry if like people say the builder goes bankrupt.

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