A prominent Wollongong development company making headlines for building an apartment building without proper approval has highlighted areas where homebuyers need to be wary.
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The five-storey block at 21 Bourke Street in North Wollongong has been complete but sitting empty for months with buyers in limbo.
Realta Developments have been unable to get approval to build “modifications” they have already made to windows, balconies and privacy screens.
Illawarra Regional Manager of the Property Council Jancey Malins said buying off-the-plan (before a construction is complete) can be a “good deal” for buyers with government grans and stamp duty exemptions available, it comes with significant risks.
“There are a number of things that can go wrong during the construction and development phase,” Ms Malins said.
She advised anyone thinking about buying off-the-plan should get sound legal advice beforehand which clearly explains all of the conditions and risks.
The buyer also needs to ensure they have adequate legal protection if the development is not completes according to the contract and DA approved plan.
“Buyers should always do their homework on the developer and builder in order to gain some confidence on their reputation and track record of delivery,” she said.
Ms Malins suggested looking at other properties they’ve finished and if they were delivered on time, building quality and defect rate.
Lastly, buyers should also research market price fluctuations because it could lead to problems securing finance to complete the purchase.
She said a “cooling market” brings the risk of agreeing to pay more than what the property is worth.