Purchasing Off The Plan? Expect Greater Protections
There’s lot to like about buying an off-the-plan apartment particularly as an investment. The property is brand new so theoretically there shouldn’t have a whole lot of issues. A period of time has elapsed between when the deposit was placed and when the property is completed, so in a raising market there’s often positive equity in the property from day one. Nevertheless, there is no shortage of horror stories of first home buyers and investors being misled and rorted by developers not acting in their best interests.
As a result of changes to conveyancing laws approved by the NSW Parliament late last year and to be introduced in the next quarter, developers will be made more accountable to buyers, and there’ll be more certainty. The laws aim to put an end to practices such as developers cancelling sales contracts to take advantage of higher prices or property owners finding out that their apartment is actually substantially different to what they were sold.
Buyers will now be able to rescind their purchase if the property is substantially different to what they were sold. For example, if their apartment is more like a studio than a one bedroom (or missing a bedroom altogether). Conversely, a developer will only be able to cancel a contract by applying to the Supreme Court and will be liable for damages.
The legislation is likely to boost confidence in a sector that is struggling in light of difficult market conditions and a host of scandals. If you would like to discuss how Certainty Property can reduce the risks associated with property investing, please contact us at firstname.lastname@example.org. We do property management differently.