Off the Plan Purchases
You may be wondering... What is an 'Off the Plan' purchase? An Off the Plan purchase is where you purchase a property that construction of the house/unit either has not yet commenced or has not been fully completed. Unlike a house and land package, you do not settle on the block of land first and then progressive pay for the construction. Alternatively, there is just one settlement that occurs only once the property is fully complete.
Is there anything you need to know about purchasing a property Off the Plan regarding your finances? Well there are some things to think about. As the property is not yet completed, often the lender will not value the property and hence will only issue you with a conditional approval. Often the vendor will request that you obtain unconditional approval, which may not be possible if the bank has not valued the property. You may then need to speak to your settlement agent/solicitor to discuss your options on how to proceed.
If the lender decides to value the property and then proceeds to unconditionally approve the loan, could there be any issues? Well if the loan is unconditionally approved, this approval is usually valid between 3-6 months. After this time, if the property has not yet settled, then the unconditional approval may lapse. In this case, you may need to reapply for your finance approval.
