There are risks and rewards when it comes to buying an off-plan condo unit. The cost savings involved is definitely a key factor for many people. However, the downsides, including a loss of deposit due to the developer not completing the project, also need to be weighed carefully.
First and foremost, you need to choose a developer you trust when buying an off-plan condo unit. A proven company with a track record of completed projects is more likely to deliver what has been promised. This isn’t to say you should avoid smaller homebuilders. Just understand the risk can be greater. With that in mind, here are three things to remember when buying an off-plan condo unit.
Related: Should you buy a condo unit in an older building
3 things to remember when buying an off-plan condo unit
1) Delays are allowed for
The purchase agreement you’ve signed when buying an off-plan condo unit usually allows the developer to delay project completion for basically any reason they see fit. There is no penalty in most cases assuming they have notified you accordingly. It is important to know what your rights are before agreeing to any sale. Be sure to ask the developer about this and understand what’s been included in the contract.
2) The showroom and CGIs are not always what they seem
New condo project showrooms and the CGI images used to promote them always look nice. A great deal of time and money has been spent to ensure these entice potential buyers. And then when the day finally comes to transfer the unit, everything seems a lot smaller and less illustrious. Is this a case of the developer overpromising something or you getting your hopes up?
In most cases, it’s a little of both. Showrooms and CGIs have been crafted exclusively to compliment the condo, not necessarily reflect how you’ll see it on a day-to-day basis. However, nothing in life looks like the marketing materials. Burgers are always juicier in TV commercials and IKEA furniture appears better inside the store than at your home. This is just how the world works.
3) Visit the site
Location is everything in real estate. And for years now, developers have been using non-scale maps and dubious measurements to make their condo projects seem to be in better locations than they really are. For example, being a five-minute drive away from a public transportation station isn’t all that helpful since you probably aren’t going to take your car there. On the surface, it sounds good. But the reality is a bit different. In this case, that short car ride is likely to be a fairly lengthy walk.
That’s why you should visit the site or at least see where it is on an actual map before buying an off-plan condo unit.
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