Mitigating Risks: What to Look for When Buying Off-the-Plan

Buying off the plan is becoming more popular in Australia, especially for first home buyers in Sydney, Queensland, and the ACT. It allows you to secure a property with a smaller deposit, often as little as $10,000, and gives you more time to save while the project is being built.

Like any property purchase, there are risks. If you are planning to buy your first home or an investment property off the plan, it is important to know what to look out for so you can make a safe and confident decision.

Understand What Buying Off-the-Plan Involves

Buying off the plan means you are committing to a property that has not been built yet. You are purchasing based on plans, designs, and display suites rather than a finished product.

Some of the benefits include:

• Securing today’s price for a future property
• More time to save for your home loan deposit
• Access to first home buyer grants and incentives
• The ability to customise finishes and layouts

At the same time, there may be delays in construction or changes to the final product. Being prepared will help you avoid stress later.

Autobiography Wickham | Off the plan property | Secure with $10k and $274 x 86 weeks

Research the Developer’s Reputation

The developer plays a big role in how smoothly your off-the-plan purchase will go. A well-established developer is more likely to deliver on time and meet quality expectations.

Things to check:

• Past projects and their completion timelines
• Quality of construction and design finishes
• Reviews and feedback from other buyers
• The developer’s financial stability

Doing your research early will give you peace of mind and reduce risk.

Carefully Review the Contract

An off-the-plan contract is not the same as a standard property purchase. It often includes extra clauses about settlement, timelines, and potential design changes.

Key areas to focus on:

• Sunset clause: the deadline for project completion
• Variations: what changes the developer can make to the design
• Delay clauses: what happens if the project is delayed
• Cancellation terms: what happens if the project does not proceed

It is important to have a property lawyer review your contract before you sign. This ensures you understand your rights and obligations.

Auburn Square | Off the plan property | Secure with $10k and $418 x 103 weeks

Be Aware of Market Changes

The property market in Sydney, Brisbane, and Canberra can shift during the construction period. If prices fall, your property may be worth less at settlement than what you agreed to pay.

Consider:

• Market trends in your area
• Interest rate changes
• Your ability to secure finance later

Planning for these possibilities will help you avoid surprises.

The Edmondson Collection | Off the plan property | Secure with $10k and $1,236 x 17 weeks

Review Inclusions and Finishes

Make sure the inclusions are clearly outlined in your contract. This prevents disputes at settlement.

Check details such as:

• Appliance brands and warranties
• Kitchen and bathroom fittings
• Flooring materials and finishes
• Parking and storage availability

Having everything in writing ensures you know what to expect when you receive the keys.

226 Grange Avenue | Off the plan property | Secure with $10k and $944 x 53 weeks

Inspections and Defect Liability

Before you move in, you will be able to inspect the finished property. This is your chance to check for any issues and request repairs.

Also, find out how long the defect liability period lasts. This period allows you to report problems after settlement, and the builder must fix them within that timeframe.

Plan Your Finance Early

Even though you can secure an off-the-plan property with a smaller upfront payment, you will still need to be prepared for the final settlement.

Tips for managing finance:

• Get pre-approval early from your lender
• Be aware that pre-approval usually only lasts 3 to 6 months
• Keep your financial situation stable until settlement
• Understand stamp duty and additional costs

Good financial planning ensures you are ready when the property is completed.

How Coposit Can Help First Home Buyers and Investors

Buying property off the plan can feel overwhelming, but Coposit makes it simple. With Coposit, you can secure a property in Sydney, Queensland, or the ACT with just $10,000 and pay the rest of your deposit in weekly instalments while your property is being built.

Through the Coposit app, you can:

• Explore a wide range of properties
• Secure your first home or investment with a small deposit
• Spread out your payments in a way that fits your budget

This approach makes property ownership more accessible, helping you get into the market sooner without the stress of saving a full deposit upfront.

The Markets Residences | Off the plan property | Secure with $10k and $682 x 33 weeks

Key Things to Check Before Buying Off-the-Plan Property in Australia

• Research the developer’s track record
• Get legal advice and review your contract carefully
• Understand sunset clauses, variations, and cancellation policies
• Keep an eye on property market trends and interest rates
• Check all inclusions and specifications in writing
• Take advantage of your inspection and defect liability period
• Secure finance and maintain eligibility until settlement
• Consider using Coposit to make your first home or investment more achievable

By being prepared and informed, you can minimise risks and confidently move forward with buying off the plan in Australia.