What does buying off the plans mean?

Short answer: Buy before built, based on plans. Often cheaper. Risks: developer failure, quality, delays. 10% deposit typical.

What this actually means in plain English

You buy a house or apartment before it is built, based on the plans and showroom. It is often cheaper than existing homes. But there are risks: the developer might go bust, the finish quality might differ, and completion might be delayed. You usually pay a 10% deposit and the rest at completion. Use a lawyer who specializes in off-plan purchases.

Key Facts

Purchase based on architectural plans and showhome
Often 10% deposit, balance at completion
Risks: developer insolvency, construction delays
Sunset clause allows exit if not completed by deadline
Need specialized lawyer for off-plan contracts
Can get $10,000 First Home Grant for new builds

Example

Price: $550,000 (off plan)

Vs Existing: $600,000 (similar existing)

Deposit: $55,000 (10%)

Completion: 18 months

Risk: Developer delays by 6 months

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