What Should You Consider When Buying a Property Before It’s Built

Choosing to buy a home or investment property before the building is complete can be a really exciting opportunity to secure a brand-new property. However, with having no property to view, the process can be quite different from the normal steps taken when purchasing a property that is already built. Before making any sort of commitment to the purchase, it is important to fully understand what you are buying. Throughout this article, some key factors to consider will be discussed, including the developer’s track record, the property’s plans and specifications, your finances, and the expected completion timeline.

Research the developer 

Researching the developer is a really good place to start, as they are who you are trusting the most in this process to deliver the property as promised. The key areas you should look into include their experience, track record and any previous developments. Pay close attention to the quality and standard of any properties they have completed. Another helpful thing to do is to check if their projects were delivered on schedule, as it is very common for delays with new builds; then you can prepare yourself for said delay. It is also good to speak to other people who have bought properties built by the same developers or next best deep dive, look into the reviews. While brochures and other marketing materials can provide useful information, carry out independent research into both the developer and the specific project. This can give you a clearer picture of what to expect before making a commitment.

Look carefully at the plans and specifications

Without having the physical property to look at, it is hard to know exactly what you are purchasing, so it is important to examine the plans and specifications in detail. When purchasing an off-plan property, you may need to make decisions based on floor plans, architectural drawings, specifications and computer-generated images. Check the proposed layout and dimensions to make sure the space meets your needs, as well as which fixtures, fittings, finishes and appliances are included. For larger developments, look at any shared facilities and communal spaces that will be available. It’s also worth asking the developer whether any elements of the design or specification could change during construction.

Understand the financial commitment

Whether you’re a first-time investor or already have a property empire, it's vital to fully understand the financial commitment involved with purchasing the property. It is important to look past the purchase price alone to get a realistic understanding of the finances required. Consider things like reservation fees, deposit requirements and when payments will become due. If you require a mortgage, check how the expected completion date could affect your arrangements, particularly if your mortgage offer has an expiry date. You should also account for any applicable taxes, legal fees and other purchasing costs, along with ongoing expenses such as service charges or maintenance fees. Keeping some flexibility in your budget can also help you manage unexpected costs that may arise before or after completion.

Consider the construction and completion timeline

You should be given an estimated completion date however, as previously mentioned, it is very rare they are stuck to. Delays can occur for various reasons, from construction and supply issues to unexpected administrative hurdles. Consider how a later completion date could affect your existing accommodation, moving arrangements or financing, and plan for some flexibility where possible. It’s also important to check the purchase agreement carefully to understand what happens if the development is delayed and whether any relevant provisions apply. Ask the developer how progress updates will be communicated throughout construction and how much notice you can expect to receive as the property approaches its completion date.

Conclusion

Buying a property before it’s built can be an exciting opportunity, but it’s important to know exactly what you’re committing to. Taking the time to research the developer, understand the plans, prepare your finances and consider potential delays can help you approach the purchase with greater confidence and avoid surprises along the way.