Buying 'Off the Plan'

Forward Planning

Off the plan purchases have been a popular trend over the last decade in Australia. If you are interested in buying a property off-the-plan, you should -

Inspect the display unit carefully as you are purchasing the property sight-unseen
Go through the contract with a solicitor
Understand the terms of sunset clauses and their implications
Be aware of variations to the contract which gives the builder flexibility to modify the construction and inclusions
Check your options especially in relation to the schedule of finishes
Check allowable variations in costs
Review the Body Corporate/strata fees and regulations
Be aware of when your stamp duty liability is due for payment
Find out if the deposit is held in a trust account

Deposit

Usually the deposit required is 10% of the purchase price. You may want to consider a long-term deposit bond in this case.

Settlement

Make certain you do a pre-purchase inspection, checking against your schedule of finishes and inclusions.