Buying a property ‘off the plan’ means buying a property that is yet to be built.
The construction is determined by the developer and offered to the buyer. Prospective buyers are typically supplied with information and a visualisation of the property to allow them to see the potential property purchase prior to construction. This information can include floorplans, elevations, artist renderings of interiors, architectural models of the exterior and even display suites and site tours.
A deposit is required from buyers when signing a contract to purchase the property, this typically ranges between 5% to 20% of the estimated price a property will be worth when completed. The balance of the purchase price can be broken up into progress payments which is in line with the construction progress, or is required to be paid when the property is completed and the purchaser is able to take possession.
The main advantage to buying off the plan is that you agree upon a purchase price before the building is completed, and generally only need to offer a small deposit. In theory, this means that you could pay a lot less for a property than it’s worth at the time you move in, as property prices could increase significantly during the time it takes for your developer to build the home.
Other potential advantages include;
- Stamp duty discounts
- Near-perfect condition
- Offer buyers more time
- Tax benefits
If you’d like to discuss how we can assist you in this area, call 1300 155 661 or click “Book a call” and we’ll contact you when it’s convenient for you.