“Renovation” is an effective way to add tangible value to your off the plan property.
It’s a strange concept for most so bear with us.
When you purchase an off the plan property the vendor has selected the appliances, carpet, tiles, cabinetry, kitchen design and all other fixtures and fittings. All of these items have a direct cost, but the vendor can make cheaper, bulk purchases from a trade supplier.
So how do I renovate to add value?
Most off the plan properties are fixed price. If the vendors discount the price on one dwelling, they lower the benchmark for the rest of the development. As the other dwellings in the development have the same fit and finish, and assuming they have the same accommodation and size, they should all sell at the same dollar per sqm rate. Therefore, discounting a price is not the preferred option for a vendor.
However, most vendors will consider upgrades to fixtures and fittings in exchange for no discount.
A buyer may negotiate by requesting any of the following options –
Installation of an island bench with power points in the kitchen
Installation of curtains and blinds
Reduce or increase the size of a room by moving or installing a wall
Upgrade lighting packages
Installation of extra power points
Upgrade cabinetry packages
Upgrade tap ware
Upgrade wardrobe fit out
As you can see, if you can negotiate to “renovate” your off the plan purchase, you can add value and differentiate yourself from all other dwellings in the development. In the event that you ever need to sell, this can potentially make you money and help you sell quicker.
Most vendors will look at the upgrade to your property, but some won’t. If the changes are too onerous in the vendor’s eyes, they may agree to only a few changes, or even none at all. It is worth asking the question though.
If there are town planning changes required, expect the answer to be no.