Purchasing apartments off-the-plan has becoming increasingly popular, with both investors and owner-occupiers taking advantage of the lifestyle and wealth potential benefits.

Four things you must know about off-the-plan apartment finance

Purchasing apartments off-the-plan has become increasingly popular, with both investors and owner-occupiers taking advantage of the lifestyle and wealth potential benefits.

However, not everyone that signs a contract realises their dream of actually settling.

Frustratingly, a large percentage of people who can’t get finance and subsequently cannot settle make totally avoidable mistakes.

Here are a few things you need to know if you want to settle smoothly.

1. Speak to the right broker

And by right broker we mean an off-the-plan lending specialist broker. End of story.

A highly experienced off-the-plan finance professional can establish your borrowing capacity and identify what you can afford.

When buying off-the-plan, your mortgage broker’s knowledge will be paramount in assisting you making an informed decision and advising on what price range you can look at.

They can also tell you what your own responsibilities are in ensuring that you are in a solid position to settle your loan.

Book an appointment with our off-the-plan lending specialists now!

2. Before taking on more debt proceed with caution

After signing a contract it’s important to understand that changes in your financial circumstance will have a bearing on your capacity to borrow and the ability to settle.

Taking on additional debt and increasing your outgoing commitments could potentially hinder what the bank will allow you to borrow.

We are not by any means saying that you should not take on any other commitments, but rather urge you to speak to your broker first to run through the calculations to see what impact more debt will have on the amount you can loan.

A simple call to Blackburne Mortgage Broking can assist you with this.

3. Be wary of what changes may affect you

Life changes such as employment status, adding to your family and relationship breakdowns are some of the factors which may create obstacles to settle.

Sometimes these things present themselves unexpectedly, other times they are calculated.

The wisest thing to do is contact your finance broker as soon as you know a change is on the horizon to ensure that it will not affect your capacity to settle.

If it is possible there may be a problem, your broker will assist you in implementing a strategy to alleviate the risks.

Blackburne Mortgage Broking can be contacted at all hours on 9429 5794.

4. Allow yourself a buffer

The best way to approach an off-the-plan purchase is conservatively.

As the transaction is usually a long-term prospect, in many ways it’s sensible to expect the best – but have a backup plan should your ducks fall out of line.

Perhaps it is worthwhile to consider how much you wish to stretch yourself financially given that the banking goal posts are changing on a regular basis and there is no guarantee what you can afford today will be the same come settlement.

Saving a cheeky little nest egg can also be beneficial. Having some extra cash on hand as a “just in case” fund may also, at the very least, give you the peace of mind that you have some contingency in place if the stakes change not in your favour.

Next steps

The take away from this is twofold.

Firstly you need an off-the-plan specialist mortgage broker, particularly if you want the most stress-free and seamless settlement experience.

Secondly, you need to inform yourself and make sure you understand what your own responsibilities are to achieve a smooth transaction.

Buying off-the-plan has proven to be a positive move for many purchasers and there is no reason why you can’t be next – with a little planning and some experts on your side.