Off the plan refers to the process of purchasing a property, typically an apartment or townhouse, before it has been constructed or completed. In such cases, buyers pay a deposit upfront and agree to pay the remaining balance upon completion of the property or in stages throughout the construction process.

The buyer may have the opportunity to customise certain aspects of the property, such as selecting finishes or fixtures, within the parameters set by the developer. They could also potentially secure a property at a lower price compared to the higher market value at completion.

Off the plan property refers to property that is being sold before it has been constructed or completed. It is a term commonly used in real estate to describe the sale of properties based on their proposed plans, designs and specifications.

When a property is marketed as ‘off the plan’, it means that buyers have the opportunity to purchase the property based on the developer’s plans and representations. Buyers typically review architectural drawings, floor plans, artist’s impressions and other materials provided by the developer to get an understanding of the intended design and features of the property.

It is a type of property transaction where buyers commit to purchasing a property that is still in the planning or construction phase. When making an off the plan purchase, buyers enter into a contract with the developer and pay a deposit to secure their interest in the property.

The contract outlines the agreed terms such as the purchase price, payment schedule, completion date and any other relevant conditions. The remaining balance of the purchase price is typically paid upon completion of the property or in stages as specified in the contract.

Off the plan purchases are commonly associated with new or upcoming developments including apartments, townhouses or housing estates.

Depending on your personal circumstances and preferences, buying off the plan can have both advantages and disadvantages.

With off the plan, you’re able to secure a property at today’s prices but potentially benefit from future capital growth during the construction period and after completion. There may also be off the plan stamp duty concessions or exemptions available which can result in cost savings.

On the other hand, you typically have limited information about the final product when buying off the plan. This is because you have to rely on plans, specifications and marketing materials provided by the developer that may not fully represent the actual finished product.

After researching and finding a suitable property, buyers review the plans, designs, specifications and other documentation provided by the developer. This allows them to visualise the intended design and features of the property to properly assess its suitability. If they decide to proceed with the purchase, they will enter into a contract and be required to pay a deposit.

Once the contract is signed, the developer will commence construction of the property. Throughout the construction period, they may provide progress updates and opportunities to make certain customisations or selections that can personalise the property to some extent.

When the construction is nearing completion, the developer will notify you of the settlement date. This is the point at which the property is ready for occupancy and ownership is transferred to the buyer. At settlement, you will need to pay the remaining balance of the purchase price as specified in the contract and the developer will officially hand over the property to you.

The first step is to research and identify off the plan developments that align with your preferences, such as location, property type, budget and amenities. You will then contact the developer to request detailed information about the off the plan project. This may include floor plans, artist impressions, specifications, contract terms and pricing schedules.

Take the time to review the developer’s track record and seek professional advice. Get in touch with a solicitor or conveyancer with experience in off the plan purchases to review the contract and provide legal advice. OR, reach out to a buyer’s advocate like The CASA Concierge who can act as your one stop shop for everything you need here.

If you are satisfied with the terms and conditions, sign the off the plan contract and pay the required deposit as specified in the contract. Ensure you understand the deposit amount, payment schedule and any refund provisions or cooling-off period.

Yes, it is possible to negotiate off the plan prices. Although the extent of negotiation can vary depending on the market conditions, the developer’s policies and the level of demand for the property.

By conducting thorough research, you can establish a basis that will help you determine a fair market value for the property. At times, negotiating off the plan prices can be more effective during the early stages of the development when the developer is seeking pre-sales to secure financing.

In addition to negotiating the price, consider discussing other incentives or benefits you would like to receive. These could include upgrades, additional features or flexible payment terms. Developers may be more willing to accommodate these requests to secure sales.