Off the Plan

What is an ‘off the plan’ purchase?

Usually associated with Apartments and Townhouses, an ‘off the plan’ purchase is based on a single contract of sale, just like purchasing an already established home.

Usually, you will be given graphics, plans, rental estimates, strata body fees etc. (generally these are strata developments) to make an informed decision.

These type of purchase attracts a deposit down (generally 10%), with the balance on completion / settlement.


A summary of off the plan purchase is:

  • No construction progress payments during purchasing

  • Possibility of an upswing in price by the time it settles

  • Can be suitable for self-managed super funds

  • Low maintenance, being a new property and fittings are under warranty

  • Statute structural warranty from Builder

  • High depreciation from all new items

The Risks

The risks of off the plan purchases are:

  • Settlements can be up to 2 + years away; this can be a big advantage or a big disadvantage, as even with the best of intentions, your personal circumstances can change and you may not be able settle when the time comes.

  • Committing to a cash unconditional contract attracts a risk; finance clauses cannot be implemented this far in advance.

  • Make sure you are getting exactly what you expect; get everything in writing including plans and specifications.

  • Sometimes values can be over inflated and valuation issues become a problem.

  • Possible lower value when ready to settle