Questions to Ask Before Buying a New Apartment, House and Land Package or Dual Occupancy Home
The quality of a property purchase is determined as much by the questions you ask before signing as by the price you pay. This guide provides the essential questions every buyer should get clear answers to before committing to any new property in Australia.
About the Developer
What completed projects has this developer delivered in Australia? Can I inspect completed buildings in the same city? Have there been defect disputes or Owners Corporation issues in prior buildings? Is the developer's financial backing sufficient to complete this project without a funding event? Is the builder the same company as the developer, or a separate contracted builder?
Developer credibility is the single most important factor in off-the-plan risk management. A good location with a weak developer is more risk than a slightly less premium location with a developer who has a track record of on-time, on-specification delivery.
About the Contract
What are the sunset clause provisions? Under what circumstances can the developer rescind the contract? What specification changes can the developer make without buyer consent? Is there a variation clause? What does the contract say about settlement timing and who bears the risk if valuations come in below the contracted price?
Off-the-plan contracts can be complex. A qualified Australian conveyancer should review the contract before signing, regardless of how straightforward the developer presents the purchase.
About the Financial Return
What is the projected weekly rent, and what comparable properties support that projection? What are the quarterly strata levy estimates for Year 1? Has a quantity surveyor's depreciation estimate been prepared? What will this property cost to hold each week after all expenses and the estimated tax benefit from depreciation and negative gearing?
Ask for the net holding cost, not the gross rental yield. The two numbers can be very different.
About the Location
What is the rental vacancy rate in this building's immediate suburb over the past 3 years? What infrastructure investment is planned or committed within 2km? Are there competing new supply pipelines in the same precinct that could affect vacancy and rent on completion?
About Property Management
Is there a recommended property manager for the building? What are their fees? Do they have tenants for comparable properties in this building already? What is their current vacancy rate across their managed properties?
VSNRY Can Answer These Questions for You
VSNRY Property provides buyers with the answers to all of the above questions before any purchase recommendation is made. Our role is to ensure you are buying with full information — not partial developer marketing. Book a consultation to start with these questions applied to a specific project.
