What is buying off the plan?
Buying off the plan means you are buying a property off a house plan. The property is advertised for sale but the building is only in early stages of construction or has not yet started construction. There are advantages and disadvantages to this type of transaction with lots of things for you to consider.
- Gives you more time to get your finances organised
- You may have the opportunity to customise colour palettes and be involved in other styling choices
- You get to follow the progress of your build from start to finish
- NSW Office of State Revenue provide certain concessions to people buying off the plan – including stamp duty exemptions and grants (*conditions apply)
- The timeframe may differ from what is expected with delays in the construction due to weather, trades etc
- It is hard to gauge the actual size of the rooms on a plan
- The end property may differ from your expectations
- Changes could be made to the building plans during construction
Things to consider
- Be aware of where the deposit money gets paid into. A developer may offer higher interest rates and there is a risk to you if the developer goes bankrupt. A Trust account is the safest and most affordable option
- Make sure you have an understanding of the quality of the fixtures and always check that you are getting what you paid for
- You need to have the balance available on the settlement date. This means timing the sale of your current property (if you have one) to work in line with the build finish time. This will save you having to organise temporary accommodation.