Off-the-plan Unit is going to finish soon - what do I need to prepare?

[EN710]

Just got an update that our OTP ppor is going to be completed in 3-4 months time (date not confirmed yet, timing is still indication only).

Now, before settling, what kind of due diligence do I need to do?

List on top of my head:
- Apply for loan, just need to wait until I have the date.
- Visit/ audit to make sure the completed unit is as written in contract, and not defective --> who can do this btw? B&P? Valuer?

Other things that I need to be aware of?

 

[SeafordSunshine]

Congrats!

I think its called a snag list, suggest you ( or someone who knows about this ) do it before you settle,
I'm sure there are plenty of other things as well but this is a start!

enjoy it
SeafordSunshine

 

[EN710]

Thanks Sunshine - now I know what's it's called... Will Google around

 

[Colin Rice]

1. Talk to your bank or broker ASAP to get a pre-approval in place with a contingency in mind if your valuation comes in lower than expected (common) as you will need to come up with the difference at settlement.

2. Get an "as if complete" valuation done ASAP to give you an idea of the potential final valuation.

3. Use a competent and recognized building inspector to conduct an inspection to check for defects etc. Well worth the few hundred bucks imo.

4. If you don't settle in time then you will likely be charged penalty interest by the developer/builder.

5. OTP normally have 14 days (check contract) to settle from issue if titles and this is a tight time frame to get final val done, loan approved and settled.

 

[EN710]

1. Talked to broker before regarding servicing, they said in current situation shouldn't be an issue. I am planning to talk to them again in 1-2 months as not many bank do more than 3 months approval.

2. How do you order this (from bank?) and how it can be carried out if we don't have access to the unit yet?

3. Anyone has recommendations for Sydney builder who can do the inspection?

4. Yes, it's in contract

5. The RE will give monthly update from now on (building still need internal fittings), so I'm am thinking of starting finance etc when the completion date is more definite

 

[The Y-man]

5. The RE will give monthly update from now on (building still need internal fittings), so I'm am thinking of starting finance etc when the completion date is more definite

As FMS said above - you'll be surprised how little notice you get of completion. Don't be surprised if they suddenly let you know out of the blue "it's ready - pay up".

The Y-man

 

[EN710]

As FMS said above - you'll be surprised how little notice you get of completion. Don't be surprised if they suddenly let you know out of the blue "it's ready - pay up".

The Y-man

I hope not...so far they have given us regular updates every 3-4 months... but in case, Brokers here, what's the fastest loan application approval you have gotten? one day (hahaha)?

Currently looking around (aka. Googling) for some building inspections company in Sydney, and a bit confused with the name of the service. I suppose, it won't be a regular B&P report? Something around Completion report, Defect report, Warranty report....

I'm doing credit card research after, thinking of piling up points when buying furnitures

As you can tell, I'm actually quite excited (apart from getting confused on certain things)

 

[Colin Rice]

1. Talked to broker before regarding servicing, they said in current situation shouldn't be an issue. I am planning to talk to them again in 1-2 months as not many bank do more than 3 months approval.

I did an OTP with ANZ 6 months out no probs.

2. How do you order this (from bank?) and how it can be carried out if we don't have access to the unit yet?

Get the broker to order one. It is done with a combination of the valuer visiting the site plus plans and specs supplied to valuer. The most recent one I did came in at purchase price and was valued same once fully completed.


3. Anyone has recommendations for Sydney builder who can do the inspection?

Your broker should be able to or maybe some of the Sydney brokers on the forum could recommend someone reputable?

4. Yes, it's in contract

Make sure the broker stays in contact with the RE agent and settlement agent so you dont get sprung. Once a certificate of occupancy is available you need to order the final valuation ASAP to make settlement!

5. The RE will give monthly update from now on (building still need internal fittings), so I'm am thinking of starting finance etc when the completion date is more definite.

No harm in starting 6 months out but will depend on the lender chosen to a large degree. Good luck!

 

[r3ckless]

Cba does approvals lasting 6 months!!

 

[The Y-man]

Currently looking around (aka. Googling) for some building inspections company in Sydney, and a bit confused with the name of the service. I suppose, it won't be a regular B&P report? Something around Completion report, Defect report, Warranty report....

Just ring them up and explain the situation, and 1. whether they do it 2. how much.

After the first call, you'll know what it's called.

The Y-man

 

[EN710]

Just ring them up and explain the situation, and 1. whether they do it 2. how much.

After the first call, you'll know what it's called.

The Y-man

Contacted one, seems just called "unit inspections"?? Haha...
Either way, he said contacting him now is too early - December/ January is silly season apparently, so I need to contact him on closer date to see what his availability like.

 

[EN710]

Cba does approvals lasting 6 months!!

Does it? I remembered mine was supposedly lasted for 3 months or I remembered wrong.

Either way, don't want to go for CBA again if I don't need to yet.