Pros & Cons of Buying Off-the-Plan
Buying off-the-plan can be a smart way into a brand-new property — but it pays to understand both the upside and the risks before you commit. Here's a clear, honest breakdown for Australian buyers.
"Off-the-plan" means buying a property before it's built — or while it's still under construction — based on the developer's plans and designs. You exchange contracts and pay a deposit now, then settle once the build is complete. It's popular for new apartments, townhouses and house & land packages. Below are the key advantages and trade-offs to weigh up.
The Pros
Lock in today's price
You secure the property at the current price and pay at settlement — often years later. In a rising market, that can mean built-in capital growth before you've even moved in.
Lower upfront deposit
Typically only a 10% deposit is required to secure the property, with the balance due at settlement — giving you time to organise finances.
Potential stamp duty savings
Many states offer reduced stamp duty (or concessions) on off-the-plan purchases because duty is often calculated on the land value rather than the completed build.
Brand-new, low maintenance
Everything is new — appliances, fixtures and finishes — usually backed by builder warranties, meaning fewer repairs in the early years.
Time to save
The gap between exchange and settlement gives you a window to grow your savings or pay down other debts before completion.
Depreciation benefits
Investors can often claim significant tax depreciation on a new build, improving after-tax returns.
The Cons
Market can move
If the market falls before settlement, the property may be valued below your purchase price, which can affect financing.
Settlement risk
Your circumstances or lending conditions can change over a long build period, so it's vital to plan your finances conservatively.
You're buying off a plan
You rely on plans, renders and a display suite rather than the finished product — quality and finishes can differ from expectations.
Construction delays
Completion dates can move. Build delays push back settlement and can affect rental or moving plans.
Developer risk
Choosing an experienced, reputable developer matters — it reduces the risk of changes, delays or, rarely, the project not completing.
How to Buy Off-the-Plan with Confidence
- • Research the developer's track record and completed projects.
- • Have a solicitor review the contract — especially sunset clauses and finishes schedules.
- • Get pre-approval and plan finances with a buffer for settlement.
- • Understand your state's stamp duty concessions and grants.
- • Work with an independent specialist who represents you, not the developer.
Thinking about going off-the-plan?
Book a discovery call and we'll help you find the right opportunity — and guide you through every step.