Would You Buy a New/off The Plan Apartment?

StonedWizard on 09/11/2019 - 18:38
Last edited 09/11/2019 - 18:53

I am looking to buy my first place to live in, in my price range I can get an old apartments which needs a renovation and most likely will contain asbestos (built in 70’s 80’s) or a place <5 years old for about $10k more (sometimes even the same price). New apartments have modem amenities and are slightly bigger but I’m worried about build quality.

There’s been a lot of news recently about poorly built apartments in Sydney and whilst I’m sure there’s cowboys out there, would there also be long standing builders/developers who would want to maintain their reputation and continue business?

Am I foolish for considering a new/off the plan apartment?

Poll Options

  • 22
    Buying new/off the plan is safe/fine if reputable.
  • 69
    Buy old and renovate.
Home & Garden

Comments

  • SharedSugar on 09/11/2019 - 18:52
    +1

    Why don't you add a poll?

    • StonedWizard on 09/11/2019 - 18:54
      +2

      Because I’m a noob. But I’ve added it now.

  • chumlee on 09/11/2019 - 18:55

    Not foolish at all but make sure you know what you're buying

    read the minutes of body Corp meetings as well so you get a good understanding of any issues

    • coin saver on 09/11/2019 - 19:50

      Where do you buy new/off the plan apartment's that you can read the minutes of body Corp meetings?

      • chumlee on 09/11/2019 - 19:58
        +1

        I was referring to older apartments on that comment sorry

  • boomramada on 09/11/2019 - 18:56

    I have head few horror stories but I done it twice. No issues yet. Then again there are horror stories on pre build houses or designed plan. It's all depend on the builder for off the plan.

    Don't rush with paper works, find a good convancer and ask all the necessary questions.

  • trustnoone on 09/11/2019 - 18:59

    I think you can search for builders here: https://www.onegov.nsw.gov.au/publicregister/#/publicregiste… to help see if they're good or not? (of course, may not be fully indicative if they are).

    I think it's fine but I've been told you really need to look into the builder, ask about their other buildings, check strata for any issues etc.

    • fantombloo on 09/11/2019 - 19:03
      +4

      Username checks out.

  • garetz on 09/11/2019 - 19:32
    +4

    Considering all the problems alot of new builds have had, alot of people are going to be made bankrupt because of it. I would take the safe route personally, even if there is a 5% chance you will get screwed on a new build, i wouldnt take that risk.

    I wouldnt say foolish, just depends how risk averse you are.

  • oscargamer on 09/11/2019 - 19:56

    New/off the plan is NOT 5 years old.

  • kctt on 09/11/2019 - 20:16

    Better buy <5 years old apartment. Check strata meeting reports for any defects / issues / upcoming big spend.
    I would not buy off the plan apartment.
    I would not buy 70’s 80’s apartment unless it's much cheaper and has clear advantages over <5 years old apartment.

  • DingoBilly on 09/11/2019 - 20:56
    +2

    To go a bit further, my friends eperiences have taught me to never buy off the plan.

    One friend has had delays for a year now and had to change their lives around it. Another had to sue their developer who went bankrupt afterwards as they didn't deliver what they promised for a group of townhouses.

    Haven't heard a single positive story but obviously this is anecdotal. If you do the research and find a good reputable company you should be ok.

  • saimone on 09/11/2019 - 21:02

    Would you get a Strata & Building Inspection Report for <5 years old apartment?

  • nubzy on 09/11/2019 - 21:19

    Things just aren't made the way they used to be. People don't take pride in workmanship anymore and standards have slipped in every industry it would seem. I would go for an older apartment and renovate as you see fit. I read a report the other day and it's more than 70% of new apartments which have serious defects, that is disgraceful.

    • dingdong3000 on 09/11/2019 - 21:49

      Old apartments have extortionate body corp fees that will put anyone off purchasing and if its heritage site may not have conditions to refurbish how you like.

  • Collies80 on 09/11/2019 - 21:32
    +4

    If you buy off plan you risk the apartment loosing its sex appeal

    • activ8newbs on 09/11/2019 - 21:42
      +1

      Very nice hahaha

    • bloom on 09/11/2019 - 22:24

      Conversely with the jail facade it could be a sex dungeon ;)

    • Hirolol on 10/11/2019 - 14:46

      I don’t get it

  • brendanm on 09/11/2019 - 21:33
    +1

    I wouldn't buy an apartment.

  • Skramit on 09/11/2019 - 21:40

    The problem with off the plan apartments is not so much the build quality (but yes still a big risk), the main problem is the high risk of your property devaluing instantly when you move in.

    Developers want to sell the properties for as much as possible. As a result, off the plan apartments can often be over inflated in price before the build has commenced. So not only are you potentially dealing with an inflated value up front, but 2 years later by the time they are finished they can have dropped 10 or 20% in the market value on the day you move in. (Likewise it could significantly increase but very unlikely with apartments).

    There are no doubt some great stamp duty savings with off the plan, but the overall risks are much higher - delays, poor quality build, finishes not what you expected, market corrections etc. Plus you're locked in 1-2 years before you even get to move in.

    Better off leaving the off-the-plan places to the boomer property investors :)

    • AdosHouse on 09/11/2019 - 22:46

      If developers could guarantee that the property values would rise, they would sell them when they were completed, or delay the project until they rose. But they know they can't guarantee it, so they put that stupid "sunset clause" in so that if property prices rise they will enact the clause and sell it at the higher price. And if the price falls, they have sold it above market price. Either way the developer wins and the buyer loses.

      • Skramit on 09/11/2019 - 22:58

        Yep. It’s a massive trap.

    • HelpMeiCantSee on 10/11/2019 - 08:49
      -1

      Nope, the problem is indeed shitty workmanship and no recourse.

  • try2bhelpful on 09/11/2019 - 21:51

    The real estate stuff I’ve read says go for the older established blocks because they tend to be smaller number of apartments, in established areas. Wherever you go you need to talk to your neighbours to see who you are dealing with.

  • Peter Enis on 09/11/2019 - 22:29

    Remember to factor in strata fees no matter what you decide. Newer places often have higher fees because they offer more amenities, regardless if you use them or not.
    Also older places are more likely to have dedicated garages compared to newer places where you might only get a space in a large underground carpark, so storage isn't as good.

  • BugsBunnyAUS on 09/11/2019 - 22:52

    Yes but only a reputable developer with a long history of quality developments. I.e. Mirvac

  • alz on 10/11/2019 - 07:45
    +1

    With all the shit that is going on i.e. Mascot towers etc..
    I wouldn't be buying no apartments… ever!

  • HelpMeiCantSee on 10/11/2019 - 08:46

    Bankstown bros building inc. has guaranteed shitty workmanship and corners cut everywhere they can, with no resolution. They just keep on phoenixing with your $$$

  • OzHunterNSW on 10/11/2019 - 11:49

    The warning signs are out there for all to see. It would be considered irresponsible for you to consider such a prospect. You are placing your family in potential physical harm and their future in financial jeopardy.

  • Killerbala on 10/11/2019 - 12:13

    Buying anything in the current atmosphere is recipe for disaster. Just wait for 12-18 months for things to unfold. For muppets claiming the property market is bouncing back and get on before it touches the moon. Just nod and ignore them( you will have to ignore the entire MSM) watch walk the world channel (one of many good ones)in YouTube for real numbers and decide accordingly.

  • OzBoganYeah on 10/11/2019 - 12:48

    I was going to go with off the plan if it's safe but changed my mind. Old and renovating might be tedious and supplies and labor would be expensive but I guess at least you can have a bit of peace of mind just in case something does go wrong.

  • AS2035 on 10/11/2019 - 12:56

    Not all old apartments have asbestos. You can check that prior to purchasing.

    Old apartments are larger. Don't let the open plan fool you. Your kitchen is in the lunch room. There should be 2 separate rooms even if the walls that separate them have been taken down to make the room look larger.

    When you uy off the plan the developer can always alter the size (make it smaller) to fit in another apartment.

    Laundry should be a separate room as well.

    You pay for the in house gym in your state fees… signing up for the gym is cheaper.

  • Euphemistic on 10/11/2019 - 13:08

    No. I want to see what I am buying.

    • AdosHouse on 12/11/2019 - 17:47

      Exactly. I'm shelling out big money for a property, not a promise of one.

  • julesio on 07/12/2019 - 11:52

    I don’t know. I just settled on my OTP property. About 2km outside of the CBD, transport access, high quality amenities (ducted AC, fitted out kitchen, fixtures matched etc) and a well regarded developer. Two bedroom in a mid-rise with only 36 apartments. The valuation came back with the amount I paid for the property (which is extremely lucky) and I move in in a week. The two years gave me the time to come up with the 20% deposit, 10k for FHB and stamp duty waiver (resulting in affordable mortgage repayments) and the move into a property that matches my lifestyle needs (still 27) and will yield a solid rental return.

    There is risk attached, but not every OTP is a nightmare story.

    • try2bhelpful on 07/12/2019 - 14:21

      Not trying to be negative but I would be interested in an update in a couple of years time. 36 Apartments is still a lot, IMHO. If I was looking for an apartment I would still look for a smaller, older, well maintained block. You can always do the place up.

    • StonedWizard on 02/07/2020 - 21:22

      @julesio - How are you finding it 7 months later?

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