For those of you who are considering this option, we have compiled a list below of the Do's and Don'ts in entering into this type of purchase. It is important that you are fully informed and have done the necessary research before committing.

Do's
1. Do some research into the developer and their previous history -
    treat the deal as if it was an ordinary purchase. Prepare and investigate.
2. Obtain a pre-approval from your bank of choice for your purchase.
    Ensure that it is affordable and that contingencies are put in place for
    an upward trend in interest rates.
3. Ensure that you have an 'out clause' if the developer doesn't meet their
    contractual obligations.

4. While the development is taking shape, use this time to
    save as much money as you can.
5. Make sure you study the plans carefully to ensure that you are
   getting what you want. Don't commit to a property that you do
    not appreciate what it is.
6. Get an independent valuation of the plans to ensure that the price  
    is not over inflated to cater for the capital growth.

Don'ts
1. Assume that all developments of this nature will result in a profit
    and a quick sale. Markets are still volatile and the process is
    reflective of this.
2. Remember that although the property price may rise, so might
    interest rates. Don't assume that because a property is affordable
    now that it will be upon completion.
3. Assume that the banks will lend you the money you need ­- make
    sure that you get a pre-approval and that it covers worse case
    scenarios.
4. Assume that the development will finish on the date expected for
   completion; ­they often run over time due to their very nature.

So there is the Off the Plan Purchase. If you would like to discuss this further feel free to contact any of our Select Mortgage Services Contractors and they would be happy to talk you through the process.