Off the Plan

 

 

 

 

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Generally, buying “off the plan” means purchasing a property with a building in mid-construction or about to be built.

Why people find buying property off the plan attractive:

♦  when complete, the building will be brand new

 in a competitive market, it may be the only way to buy what you want

♦  the delay between the exchange of contracts and settlement means more time to save

♦  the Foreign Investment Review Board will generally favour your proposed off the plan purchase if you are a foreign investor

♦  Stamp duty is calculated on the property value when the contract is signed. The Property may be valued at more than the purchase price at settlement, but you will only pay stamp duty on the Contract purchase price

Some drawbacks to buying off the plan:

♦  there is likely to be a standard ‘sunset clause’ in the contract, allowing the seller a settlement date extension (due to strikes/bad weather/etc.)

♦  you are generally not able to obtain unconditional finance

♦  possible construction delays in final delivery

♦  the seller can cancel the contract if the property is not completed by the agreed date in the contract

♦  the builder is generally allowed a 5% variation from the plans

Before signing the Contract

Please let us review your contract before you sign it and provide you with detailed advices as buying “off the plan” comes with considerable commercial risk.

icon-logoAttractions

icon-logoDrawbacks

icon-logoBefore Signing the Contract