How to Budget for an Off-the-Plan Purchase in Perth

Buying off the plan in Perth can be a smart move. You may secure a modern property at today’s prices before construction is finished. This can help you enter the property market with less upfront pressure. Still, budgeting carefully is essential.

This guide explains how to budget for an off-the-plan purchase in Perth. It covers key costs, planning tips, and common pitfalls to avoid.

Understand the Deposit Structure

One major budgeting advantage of off-the-plan property is the flexible deposit schedule.

Most developers require:

• A small initial deposit on signing
• Incremental payments during construction
• Final payment at settlement

This staged approach can help you manage cash flow better than paying a large lump sum upfront.

Harlyn | Buy property in Perth | Secure with $10k and $408 x 89 weeks

Estimate Your Total Purchase Costs

The purchase price is only part of your budget. Include these costs too:

Government and fees

• Stamp duty (though some exemptions may apply for first home buyers)
• Title and registration fees
• Loan application fees

Professional costs

• Conveyancing or legal fees
• Building and pest inspections (if applicable)
• Mortgage broker fees (if used)

Finance costs

• Lenders’ mortgage insurance if your deposit is under 20%
• Valuation fees
• Interest charged during construction (if your lender requires interim payments)

Add all these together before you commit to a contract.

Plan for Interest During Construction

Off-the-plan contracts usually mean settlement happens after construction. Some lenders may charge interest during this period.

This is separate from regular mortgage repayments and needs budgeting. Speak with your broker about whether:

• You will pay interest only during construction
• Your lender allows delayed repayments until settlement

Knowing this early helps you avoid surprises.

Save a Financial Buffer

Even the best budgets need a safety margin.

Aim to set aside at least 5 to 10 per cent of the purchase price as a buffer for:

• Unexpected costs
• Rate increases
• Change in personal income
• Additional fit-out or furnishings

This buffer protects you if plans change or there are delays.

Understand Perth’s Market Conditions

Perth’s property market can vary across suburbs. It’s important to:

• Research recent sales in your target area
• Review local demand and rental yields
• Compare similar off-the-plan options

Understanding market conditions helps you make realistic budgeting decisions.

Estimate Ongoing Running Costs

Budgeting for future costs keeps your finances balanced after settlement.

Include:

• Strata fees
• Council and water rates
• Building insurance
• Maintenance and repairs
• Utility bills

Off-the-plan apartments often have body corporate fees. These vary widely and should be checked before purchase.

Harlyn | Buy property in Perth | Secure with $10k and $494 x 89 weeks

Check for First Home Buyer Incentives

If you are eligible, government assistance can reduce upfront costs.

In Western Australia, first home buyers may access:

• First Home Owner Grant
• Stamp duty concessions
• First Home Loan Deposit Scheme

Eligibility rules change, so check current requirements when planning your budget.

Loan Pre-Approval and Borrowing Capacity

Before signing a contract, get loan pre-approval.

This tells you:

• How much you can borrow
• What deposit you need
• What interest rates and fees apply

Pre-approval gives clarity and prevents over-committing.

Factor in Lifestyle and Fit-Out Costs

Buying a new property often comes with lifestyle expenses.

Ask yourself:

• Do you need new furniture?
• Will you renovate or upgrade finishes?
• Are you budgeting for move costs?

Include these in your overall budget to avoid strain later.

Work With Professionals

Off-the-plan purchases have unique risks and benefits.

Important people to include in your team:

• Mortgage broker
• Conveyancer or property solicitor
• Financial adviser
• Buyers agent (optional)

Their expertise helps you budget and avoid mistakes.

Review Your Budget Regularly

Market conditions and personal circumstances change. Review your budget often, especially before:

• Signing contracts
• Updating loan applications
• Making additional payments during construction

Staying flexible ensures you stay within your means.

Harlyn | Buy property in Perth | Secure with $10k and $613 x 89 weeks

Budgeting for Perth Off-the-Plan Property

A clear and realistic budget gives you confidence when buying off the plan in Perth. You need to plan for more than the purchase price. Factor in fees, interest, running costs, and a financial buffer.

With careful planning and professional support, you can budget effectively and make off-the-plan property work for your goals.