Risks of Property Buying

PrimeOne Property Group
Last updated: 02/12/2025

Buying a brand-new property is an exciting milestone, but it’s important to understand the potential risks involved so you can make confident, informed decisions. At PrimeOne Property Group, we believe in transparency and clarity. This page outlines common risks associated with purchasing brand-new, off-the-plan, and newly developed homes in Australia.

⚠️ This page is general information only.
It is not financial, legal, or investment advice. Always seek independent professional guidance before making property decisions.

⭐ 1. Market Fluctuations

Property values can rise or fall due to economic conditions, interest rates, supply and demand, government changes, or local infrastructure shifts.
Brand-new and off-the-plan properties may settle at a higher or lower value than expected.

⭐ 2. Finance Approval Risks

Banks may value the completed property differently from the contract price, especially in off-the-plan purchases.
If the valuation is lower, the buyer may need to contribute additional funds or restructure lending.

Loan policies, interest rates, and lending criteria can also change between contract signing and settlement.

⭐ 3. Construction Delays

Builder or developer delays may occur due to:

labour shortages
supply chain issues
weather events
permit or council approvals
builder workloads or unexpected setbacks

Delays can affect move-in plans, rental expectations, or financial arrangements.

⭐ 4. Changes to Specifications

Project designs, inclusions, colour schemes, appliances, materials, or layouts may be updated by the builder or developer during construction.

While changes are usually minor, buyers should review contracts carefully to understand variation clauses.

⭐ 5. Developer or Builder Challenges

Although uncommon with reputable brands, risks include:

builder insolvency
project delays
changes to builder availability
changes to warranty conditions

Always review builder history, quality, and reputation before committing.

⭐ 6. Interest Rate Increases

If you’re buying off-the-plan or with a long settlement period, interest rates may rise before settlement.
This can affect borrowing capacity, affordability, and monthly repayments.

⭐ 7. Strata & Ongoing Costs

For apartments and townhouses, buyers should understand:

owners corporation fees
maintenance fund contributions
shared facilities costs
rules and restrictions

Unexpected increases may occur over time.

⭐ 8. Limited Customisation

Brand-new homes often offer fixed designs, standard inclusions, and set colour palettes.
Buyers seeking full customisation may have limited flexibility depending on the project and stage of construction.

⭐ 9. Location & Infrastructure Risks

Future amenities, transport links, and community developments may not progress as initially planned.
Always consider long-term growth, local demand, and the surrounding suburb profile.

⭐ 10. Rental Demand & Vacancy Risks

For investors, rental markets can change due to:

new developments in the area
economic conditions
tenant demand
seasonal shifts

Rental income may be higher or lower than expected.

⭐ 11. Legal & Contract Risks

Brand-new and off-the-plan purchases involve more complex contracts, including:

sunset clauses
completion dates
variation terms
deposit release conditions

Independent legal advice is essential.

⭐ How We Help Reduce Risk

PrimeOne Property Group aims to make your property journey clearer and more confident by offering:

simple explanations of project details
transparent information about timelines and inclusions
guidance on builder quality and reputation
access to professional partners for finance and legal support
clear communication from enquiry to settlement

We help you understand the important details — but your decision should always be supported by independent legal and financial advice.

⭐ Need help understanding brand-new property options?

📞 Call us today: 1300 973 810

We’re here to make your journey as smooth, informed, and stress-free as possible.