There’s something extra special about a brand-new home. Its fresh feel, that crisp paintwork, those gleaming floors …….. it feels, well, clean – pristine, serene. Completely untouched and ready for you to make it your own. Plus, when it comes to new builds, purchasing off-plan (aka buying a spec home as opposed to a bespoke build) can be an ideal option for many people.
Why? Because it offers the chance to secure a brand-new property with modern features and smart design – at today’s prices. But it does come with a fair share of questions. How exactly does the process work? What should I know before diving in?
Here’s a step-by-step guide to help you navigate buying a spec home off-plan with Kingston Group.
The benefits of buying off-plan
Before we delve into the how, let’s look at the why. Buying off-plan with Kingston comes with a whole bunch of benefits.
- Customisation options: While you’re buying a spec home, you can still choose from a range of interior design options including colours, textures, finishes and features.
- Financial incentives: New builds come with potential financial perks, like lower maintenance costs, energy efficiency and a 10-year master build guarantee.
- Capital gains: By purchasing at today’s price, you’ll benefit from any property value increases that occur during construction.
- 1-year maintenance period: You’re covered for any defects or issues that arise within the first year after completion.
- Architectural design: While some spec homes can be a little cookie-cutter, ours are architecturally designed with premium finishes and unique features.
- Modern living: You get a home designed with the latest trends and technologies which means a fresh and functional living space.
Understanding the process
Here’s a closer look at the steps involved in buying an off-plan home with Kingston:
1. Research and choose your development
Start by exploring Kingston’s developments. Each offers unique benefits, so consider what’s most important to you – location, amenities, community. Visit sites, talk to the team and gather all the information you need to make an informed decision.
2. Secure your financing
Getting your finances in order early is important. Speak with your bank or a mortgage broker to understand your borrowing capacity and different mortgage options available.
You’ll typically need:
- A deposit: This can range from 10% to 20% of the property’s purchase price.
- Pre-approval: Having mortgage pre-approval shows you’re serious and ready to proceed.
3. Choose your home and customisation options
Once you’ve decided on a development, choose the home you want. Each Kingston development offers a variety of layouts tailored to each site. While layouts are fixed to the site, you can personalise certain aspects of your new home, selecting from available finishes and features to match your taste.
4. Sign the contract
The next step is to sign the sales and purchase agreement. Make sure you understand the terms and conditions, including timelines, payment schedules and any conditions that need to be met. We recommend having a lawyer review your contract before you sign to ensure clarity and understanding.
5. Pay your deposit
After signing the contract, you’ll pay the deposit. This secures your new home and typically goes into a trust account until settlement.
6. Monitor the build process
One of the exciting parts of buying off-plan is watching your new home come to life. Kingston keeps you updated on the progress, and you’ll have opportunities to visit the site during construction. Stay in touch with the team and sing out if you have any questions or concerns.
7. Settlement and handover
Once construction is complete, the property will go through a final inspection to ensure it meets all specifications and standards. After this, the settlement process begins, where the balance of the purchase price is paid and ownership is transferred to you.
8. Pop the bubbly
With all that admin sorted and the property in your name, it’s time to crack open a celebratory beverage and enjoy life in your fresh new home.
Financial considerations
Buying off-plan involves a few unique financial elements.
- Mortgage arrangements: Make sure your mortgage aligns with the construction timeline. Some lenders offer specific construction loans with features tailored to off-plan purchases.
- Insurance: Don’t forget to arrange insurance for your new home, effective from the settlement date.
Potential risks and how to mitigate them
While buying off-plan offers many benefits, it’s important to be aware of potential risks.
- Market fluctuations: Property values can change between the time you buy and when construction is complete. Do your homework on the local market and choose developments in high-demand areas.
- Delays: Construction timelines are sometimes delayed. Ensure your contract includes clear terms about completion dates and any penalties for delays.
- Quality concerns: To mitigate this, buy from reputable developers who offer a 10-year master build guarantee for added protection.
Remember…
- Do your research: Understand the market, the developer’s reputation and the specifics of the development.
- Get professional advice: Use a lawyer and a mortgage broker to guide you through the legal and financial aspects.
- Stay informed: Keep in regular contact with the development team and stay updated on the build progress.
Ready to start your journey?
