How to Minimise Risk in Off the Plan Investments

Why Off the Plan Appeals to Buyers

Off the plan property purchases let you buy a home before it’s built. You pay a deposit to secure the property, then settle once construction is complete.

This approach offers:

• Fixed pricing at today’s market rates
• More time to save for settlement
• Access to brand-new designs and layouts
• Lower maintenance and energy costs once built

But like any investment, there are risks. Being informed helps you make confident decisions and avoid potential setbacks.

Casa Mendel | Buy townhouse in Sydney | Secure with $50k and $2,500 x 30 weeks

Understand the Most Common Risks

Knowing what can go wrong helps you plan better. Common risks include:

Market Fluctuations Property values may fall during the build period. If the market dips, your final valuation may be lower than the agreed purchase price.

Finance Issues If your financial situation changes or lending criteria tighten, you may struggle to secure a loan at settlement.

Construction Delays Weather, materials, or workforce shortages can push out settlement dates.

Developer Reliability Some developers may go over budget, cut corners, or face legal issues. Choosing the right builder is key.

How to Reduce Your Risk Before Signing

Take these steps before committing to any off-the-plan purchase:

1. Research the Developer

Look into their previous projects.

• Have they delivered on time?
• Are their builds high quality?
• Do they have positive reviews from past buyers?

Reputable developers are more likely to meet expectations.

2. Understand the Contract

Get professional legal advice to review your contract. Pay attention to:

• Sunset clauses
• Inclusions and finishes
• Settlement deadlines
• Termination rights

Never sign anything you don’t fully understand.

3. Get Pre-Approval for Finance

While you’ll apply for your loan closer to settlement, getting pre-approval now helps you budget and ensures you’re eligible based on current income and savings.

Roslyn Street | The Residences | Buy townhouse in Liverpool | Secure with $10k and $1,839 x 17 weeks

Monitor Construction Progress and Stay Updated

Throughout the build, stay in regular contact with your agent or developer. Reputable projects often provide:

• Construction updates
• Estimated settlement timelines
• Notices of delay or progress

Knowing what’s happening helps you stay financially and mentally prepared.

Cosmopolitan | Off the plan Sydney | Secure with $10k and $438 x 144 weeks

Choose a Property with Broad Market Appeal

If you’re investing or thinking long-term resale, choose a home that will appeal to future buyers or renters.

Look for:

• Two bedrooms or more
• Secure parking
• Proximity to public transport and shops
• Good school zones
• Energy-efficient features

These qualities help your property hold value and stay in demand.

The Abbotsford | Off the plan Brisbane | Secure with $10k and $1,173 x 69 weeks

How Coposit Helps Reduce Upfront Risk

One of the biggest barriers to off-the-plan buying is the deposit. That’s where Coposit makes a difference.

With Coposit, you can:

• Secure your home with just $10,000 upfront
• Pay the remaining deposit in weekly instalments
• Avoid interest, loans, and credit checks
• Lock in today’s price while you continue saving

This gives you more flexibility and lowers the risk of financial strain before settlement. If you're a first home buyer, you may also qualify for stamp duty concessions, making the purchase even more affordable.

Rhodes Bay | Off the plan Brisbane | Secure with $10k and $637 x 121 weeks

Invest Smarter in Off the Plan Properties

Off the plan investments can be a smart move when approached carefully. By researching your developer, protecting your contract, and using tools like Coposit, you can reduce risk while enjoying the benefits of buying new.

Start exploring off-the-plan projects that offer long-term value and flexible deposit options today.