1. Renovating Or Upgrading Other
2. ›Considering Off The Plan

Considering 'Off The Plan' for your next purchase?

When buying off the plan, have the terms and conditions of the contract checked by your solicitor or conveyancer to ensure what is stated on the plan is what you will be buying.

The contract should be examined thoroughly to see:

1. who holds the deposit
2. what happens if property is not completed
3. how can you get your money back if there are problems

Be careful about:

1. sales taking place before council approval
2. standard of workmanship promised
3. building changes before work has commenced
4. the time between signing the contract and completion of the work could be as long as 2 to 3 years

As buying 'Off The Plan' can take some time you may wish to use a Bond to cover your Deposit. Using a Bond means that you pay a fee to a company who guarantees that you will pay the full 100% of the properties sale price at the time of settlement.

Benefits of using a Deposit Bond include:

• You don't need the deposit in cash at the time of signing the purchase contract
• You can keep your own money in a high interest account or other investment vehicle for the duration of the build. As mentioned before this could be several years and therefore your savings could increase greatly over this time.

Your mortgage broker can assist in arranging a deposit bond for you.

You may like to use a Deposit Bond rather than your own funds to secure a 'Off The Plan' purchase.