Hey all,
I've been presented with an opportunity to purchase a single title which includes the following properties off the plan:
I've obtained the plans and inclusion list along with an asking price from the builder. I have been told that the first thing I should do is get the plans valued (quoted $1,100 by a valuer, which I think is about right). I have 2 weeks to get a valuation and tell the builder that i'll either purchase it or not (with some negotiation involved).
From there the builder tells me that as I'll be purchasing before footings are in place I do not need to pay stamp duty. I have attempted to verify this statement with the ACT revenue office, who seemed confused and told me that would be a matter to ask a solicitor.
My problem at the moment is that this is new territory for me and I don't have a lot of time to get familiar with things (can extend a week or two to give my answer). I don't want to get taken for a ride and have heard of many situations where people paid an inflated price off the plan only to find it was worth a fair bit less upon settlement. I'm not sure of what I should exactly be doing or asking and would appreciate any assistance or guidance. My plan at the moment is to:
1) Get valuation arranged.
2) Look into rental market in the area and estimate rental returns. Can discuss with agents and look online.
3) Look into builder history. Not sure how I would do that? Was considering calling the Master Builders Association (which he is a member of). He has shown me some of his earlier work to give me an idea of what to expect quality wise and that seemed quite good.
4) Give the builder a response.
5) Discuss everything with solicitor and look into contract. Look out for sunset clauses that disadvantage me.
6) ??
I've read a few things around on what to look out for but would appreciate any input as I don't feel I know anywhere near what I should to confidently progress such a purchase.
Many thanks in advance.
I've been presented with an opportunity to purchase a single title which includes the following properties off the plan:
- Commercial downstairs;
- 2 level, 5 bdr residential upstairs;
- Studio apartment around the back;
- Double garage;
I've obtained the plans and inclusion list along with an asking price from the builder. I have been told that the first thing I should do is get the plans valued (quoted $1,100 by a valuer, which I think is about right). I have 2 weeks to get a valuation and tell the builder that i'll either purchase it or not (with some negotiation involved).
From there the builder tells me that as I'll be purchasing before footings are in place I do not need to pay stamp duty. I have attempted to verify this statement with the ACT revenue office, who seemed confused and told me that would be a matter to ask a solicitor.
My problem at the moment is that this is new territory for me and I don't have a lot of time to get familiar with things (can extend a week or two to give my answer). I don't want to get taken for a ride and have heard of many situations where people paid an inflated price off the plan only to find it was worth a fair bit less upon settlement. I'm not sure of what I should exactly be doing or asking and would appreciate any assistance or guidance. My plan at the moment is to:
1) Get valuation arranged.
2) Look into rental market in the area and estimate rental returns. Can discuss with agents and look online.
3) Look into builder history. Not sure how I would do that? Was considering calling the Master Builders Association (which he is a member of). He has shown me some of his earlier work to give me an idea of what to expect quality wise and that seemed quite good.
4) Give the builder a response.
5) Discuss everything with solicitor and look into contract. Look out for sunset clauses that disadvantage me.
6) ??
I've read a few things around on what to look out for but would appreciate any input as I don't feel I know anywhere near what I should to confidently progress such a purchase.
Many thanks in advance.
