What to ask when buying a new townhouse

A new townhouse is sold on a floor plan, a render and a price list. The answers to the questions below are what tell you whether the home is right for you — and most sales teams will answer them in one email if you ask. Take this list with you.

The home

• What’s the floor area of the home itself, and of the courtyard and balconies? Renders flatter.
• Which way does the living area face? North-facing living and courtyard is the one that matters in most of Australia.
• How many car spaces, and are they a garage, a carport or an open space? Is there visitor parking?
• What’s included in the price — appliances, flooring, window coverings, air conditioning, landscaping, letterbox, clothesline? Get the inclusions list in writing.
• Which walls are shared, and what’s the acoustic rating between homes?
• Is there storage: a store room, roof space, under-stair?

Title, levies and rules

• Is it strata or Torrens title? See strata vs Torrens title.
• If strata: what are the proposed levies for the first year, what do they cover, and is building insurance included? See body corporate fees.
• What are the rules on pets, short-term letting, parking and changes to the outside of the home?
• Is there an embedded network for electricity, internet or hot water that you’d be locked into?

The project and the people

• Who is the builder, and what have they finished recently? Can you visit a completed project?
• Who is the developer, and have they delivered a project like this before?
• How many homes are in the project, and how many are sold?
• What warranties apply, and who do you call about a defect after settlement?
• Is there a display home or finished example you can walk through?

Timing and the contract

• What’s the expected completion date, and what’s the sunset date in the contract?
• Has construction started? If not, when does it, and what has to happen first — pre-sales, finance, a permit?
• How much is the deposit, where is it held, and can you use a deposit bond?
• What is the developer allowed to change after you sign — finishes, layout, the plan of subdivision?
• Can you get the contract reviewed by your own conveyancer before you commit? (You should.)

Money

• What grants or stamp duty concessions apply in this state? Victoria and Queensland currently treat new and off-the-plan homes very differently from established ones — see our guides for Victoria and Queensland.
• Is the advertised price the price for the home you’re looking at, or the cheapest in the project?
• Is there a rebate, a cash-back or anything else that a lender’s valuer will want to know about?
• What have comparable new townhouses nearby sold for? Compare price-from figures across projects in the same suburb before you commit.

Living there

• How far is it to the station or bus, the supermarket and schools — on foot, not as the crow flies?
• What’s planned for the neighbouring blocks? A quiet outlook can become a construction site.
• Is the street zoned for more of the same, so the area will keep changing?

If a sales team won’t put the answers in writing, treat that as an answer too. For the process itself, read buying a townhouse off the plan.

Common questions

What is the most important question to ask about a new townhouse?

What title it’s on and what the owners corporation or body corporate levies will be. Those two answers shape your ongoing costs and what you’re allowed to do with the home.

What should I ask about an off-the-plan townhouse?

The expected completion date and the sunset date, who the builder is, what’s included in the price, where the deposit is held, and what the developer can change after you sign.

Should I ask how many have sold?

Yes. A project that’s mostly sold is more likely to proceed on time, and the answer tells you how much room there is to negotiate.

This is general information, not financial or legal advice. Get advice that suits your situation before you buy.