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What is an off the plan property?

Buying off the plan means entering into a contract to purchase a property before the property title is created and construction is complete or has even started. This can include the sale of vacant land, house and land packages and strata properties.

Although it has some risks like delaying on the construction change in circumstances of even market sentiment. There are a lot of good reasons why you should consider buying off the plan.

When buying off the plan, during the time spent in construction you may get additional time to save for future repayments while your property has already been secured. In some cases, you may even see the value of the property increase at the time of settlement. 

When buying off the plan, many developers will offer a discounted price if you choose to commit to the purchase of the property early in the process - sometimes even before construction begins.

If you’re a first home buyer and are looking to buy off the plan, not only are you potentially eligible for stamp duty concessions as explained above, but there are some government grants that may apply to you. The First Home Owner Grant (FHOG) for instance applies in most states to first homeowners buying or building a new property, including off the plan purchases. Additionally, you may be eligible for the First Home Loan Deposit Scheme (New Homes), as the recent new home guarantee has included the option to apply for this scheme with an off the plan purchase. If eligible you can apply for your home loan with a deposit of 5%.   

Buying off the plan needs to be a carefully considered purchase as you are effectively purchasing a property where the end product can differ from your expectations and may even be worth less than you paid by the time it is finished. 

This is why engaging with a property strategist to assist you during the process can be very helpful and reassuring.

It’s important to do adequate research and obtain appropriate legal or other advice before signing any documents or paying any money. 

At this stage it’s best to get the relevant information to you, and ask some of the essential questions when buying off the plan, including: 

• When will the construction be complete?
• What is the sunset clause?
• What can I customize with the property? 
• What’s included in the property? 
• How much are the levies/strata fees for the apartment? 
• What is the developer’s history of success/completed products? 

 At PB Property we love to assist our clients to purchase with confidence. So if you are in the market and interested in buying an off the plan property but don’t know where to start, Book a time with us.