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.