When you’re thinking about buying an off-plan property, there’s no set process that you have to follow. The process is different for everyone and depends on your personal circumstances.
That said, there are some fundamental steps that you can take to ensure a smooth and positive buying experience:
1. Research your developers and developments
Proper research, sometimes referred to as due diligence, is one of the most important aspects of buying a property off-plan. You should begin the process by finding new developments in your desired areas and exploring the features they offer. Once you’re satisfied with the property, research the developer.
Take a look at their track records such as how long they’ve been in business, the previous projects they’ve completed and any reviews you can find online. By building this knowledge, you’re more likely to avoid challenges down the line and also feel more confident during the process.
When you’re making your initial enquiries, ask questions. If you have any doubts or concerns at this stage, this is the time to speak directly with the other parties involved.
If you’re utilising a government initiative, check that the development is eligible for the scheme.
2. Consider your financing options
Once you have a development in mind, you need to source your financing. It’s always best to speak to a professional, such as a mortgage advisor, at this stage of the process.
They can help you find the right mortgage product for you and you may be able to acquire an ‘Agreement in Principle’. This is a confirmation that a lender is willing to work with you and helps you demonstrate your commitment to developers.
3. Make an offer on the development
Once you’ve found the ideal development, you’re in the position to make an offer. This is typically where off-plan property purchases differ slightly as you’ll be asked to put down a non-refundable reservation fee. The reservation fee is a confirmation that you want to buy the property and means the developer won’t sell the plot to anyone else while you get a mortgage in place.
At this stage, you may also have the option to choose the various fixtures and fittings that make up the property - such as flooring, white goods and decoration. Make sure that the developer understands what you’re looking for so there is no chance of issues later down the line.