Off the plan property is one of the most commonly misunderstood purchase types in the Australian market. Buyers either dismiss it based on misconceptions or commit to it without fully understanding what they are signing.
This blog explains what off the plan actually means, how the purchase process works, and what buyers need to know before they commit.
Buying off the plan means purchasing a property before it is built, or while it is under construction.
When you buy off the plan, you are entering into a contract to purchase a property at an agreed price based on plans, renders, and specifications rather than a completed building you can inspect. The property does not yet exist in its final form at the time of signing.
Settlement, which is when the property formally transfers to your name and you pay the balance of the purchase price, occurs when construction is complete and the property receives its occupancy certificate. That typically happens 12 to 24 months after contracts are signed, though timelines vary by project.
Price certainty. You lock in today's price at signing. If the market rises during the construction period, you settle at the original price regardless. If comparable properties in the area are selling for more at settlement than you paid, you have built equity before you have even moved in.
Deposit flexibility. Off the plan purchases typically require a 10% deposit at contract exchange rather than the full purchase price. That deposit is held in trust until settlement. Through Coposit, eligible off the plan developments can be secured with $10,000 upfront and the remaining deposit paid through weekly instalments during construction.
Time to save. The construction period gives buyers time to continue saving toward settlement costs, reduce other debts, and prepare for the home loan they will need when the property is complete.
New building benefits. New properties attract higher depreciation deductions for investors, have lower initial strata costs than older buildings, and come with builder defects warranties that established properties do not.
Step 1: Research and selection. You identify a development you want to purchase in. You review the plans, specifications, location, developer's track record, and pricing.
Step 2: Contract review. Before signing anything, have a solicitor or conveyancer review the contract of sale. Off the plan contracts contain specific clauses around variations to plans, sunset dates, and developer rights that are worth understanding before you commit.
Step 3: Signing and deposit. You sign the contract and pay the deposit. For most off the plan purchases, this is 10% of the purchase price. Through Coposit, you pay $10,000 upfront and the remainder in weekly instalments.
Step 4: Construction period. The developer builds the property. During this period your deposit is held in a trust account. You continue with your life, saving and preparing for settlement.
Step 5: Practical completion. When construction is complete, you receive notification that the property is ready for settlement. This triggers the home loan application process.
Step 6: Final inspection. Before settlement, you inspect the property against the contract specifications. Any defects or variations from what was agreed should be identified and reported to the developer at this stage.
Step 7: Settlement. Your lender and conveyancer coordinate with the developer's representatives to transfer funds and register the property in your name. You receive the keys.
Sunset clauses. Most off the plan contracts contain a sunset clause, which allows either the buyer or the developer to terminate the contract if the property is not completed by a specified date. In NSW, legislative changes have restricted developers from using sunset clauses to rescind contracts opportunistically when property values have risen, but buyers should understand what the clause says in their specific contract.
Variations to plans. Developers sometimes make minor changes to plans during construction. Most contracts allow for minor variations. Understanding what constitutes a minor variation under your contract and what rights you have if the variation is significant is worth clarifying with your conveyancer before signing.
Lender valuation at settlement. Your lender will value the property at or near settlement. If that valuation comes in below the purchase price you agreed, the lender will only lend against the lower value. You would need to fund the difference from other sources. This risk is more significant in markets where prices have softened since signing.
Developer track record. Not all developers are equal. Understanding who is building the project, what their completion history looks like, and what financial backing is behind the development reduces the risk of delays, defects, or in the worst case, developer insolvency.
Browse current off the plan listings across NSW, QLD, and WA on the Coposit projects page, download the app, or contact the team to understand how the purchase process works for a specific project.
Share this article
Follow Coposit:
© 2025 Copyright Coposit.
