Buying off the plan means you are literally buying from a plan only; you haven't seen the finished product yet.  You may enter into the purchase contract either before development or during construction.

When buying off the plan, it is important to consider what you're getting for your money and how this process will be different to buying an established property. 

• An off the plan contract will be much more detailed. 
• Settlement for an existing property usually occurs 30 to 90 days from the contract date whereas an off-the-plan property will settle once the building has been completed with usually a 10% deposit upfront and nothing else to pay until completion.  In the case of a house and land package, you will settle the land first, and the building will be paid as the building progresses.

 The advantages of buying off the plan: 

• Choice

You'll have greater choice in chosing the properties as well as finishes, fixtures and style.  Sometimes (but not always) you may even be able to make minor changes to the plan.

• Price

After construction commences, prices usually rise. Buying property off-the-plan before construction generally ensures you have the best possible price.

• Secure Property at Today's Prices

You'll be paying today's price for tomorrow's property.  This will usually mean that the value of the property upon settlement will be greater than the purchase price.

• Stamp Duty Savings

Buying off the plan in Melbourne means that  will be paying significantly less stamp duty until the building is complete.  Stamp duty is paid based on the property value at the time of signing contracts (not the final price when the building is completed). The concession is, therefore, greater if you sign a contract before construction begins.  

• Tax Benefits

When the property is purchased brand new, there is more depreciation available so you maximize your deductions.  The first 7 years is when you will be able to claim the majority of the deductions against the property.  

• Time

Because completion is some time away, you have the opportunity to coordinate the sale of existing property as well as planning your move and arranging finance.  You also have more time to save for a larger deposit.