Buying off the plan is usually purchasing a unit or townhouse that has yet to be completed. Or in some cases, a single contract purchase, where you’re not making progress payments on the construction of the loan.
When purchasing off-the-plan you have to put a 5-10 per cent deposit and then pay the remainder on completion of construction. In most cases, buyers will organise the loan they need for the property in the months before they anticipate construction to be completed on the property.
Things you need to know about buying off the plan:
You will have to pay stamp duty on the full contract price when you agree on the purchase price.
Most builders have to pay stamp duty on the land they are building on so they may factor that into the total price of the property, meaning you may be paying stamp duty twice.
Depending on the state you live in and the property price, you may be eligible for government grants and concessions. See our stamp duty calculator for the latest offers in your state.
The contract or agreed price you pay is for the final completed product, unlike buying off the plan where you’re paying in instalments to complete the property to your specifications.
When you buy a property off the plan you may have limited say in the construction of the property and its features - rooms, layouts, colours etc.
