Off-the-Plan Property Explained

Buying off-the-plan means purchasing a property before it’s built — based on architectural plans, renders and specifications rather than a finished home you can walk through. It’s been the starting point for thousands of first home buyers and investors across Australia, and for good reason: when approached correctly, the financial advantages are substantial. This page explains exactly how off-the-plan works, what the genuine benefits are, and what to watch out for — so you can make a decision based on facts, not uncertainty.

How Does Buying Off-the-Plan Actually Work?

When you buy off-the-plan, you’re signing a contract to purchase a property that has not yet been constructed — typically an apartment, townhouse, or house and land package. The process works like this:

Choose Your Property

You review the plans, inclusions, pricing and location, and choose your property or lot.

Secure Your Purchase

You sign a contract of sale and pay a deposit — typically 10% of the purchase price.

Construction Phase

Construction begins. Depending on the project, this takes between 12 months and 3+ years.

Settlement Process

When construction is complete, the property settles — you pay the balance of the purchase price.

Move In & Enjoy

You take possession of a brand new, move-in ready property — typically with a builder's structural warranty.

Importantly: your 10% deposit is held in a statutory trust account during construction. It does not go to the developer until settlement. This is a legal protection under Victorian property law.

Why Buy Off-the-Plan? The Real Advantages.

When done correctly — with a vetted developer, a well-located project, and sound advisory support — the advantages of off-the-plan over established property are significant.

Off-the-Plan

Established Property

Stamp Duty

Major concessions in VIC — calculated on unconstructed value

Full stamp duty on market value at time of sale

Deposit required

Typically 10% at signing, balanceat settlement

Full deposit required at exchange

Time to save

12–36 month construction window to build your buffer

No additional savings period

Capital growth

Lock in today's price; potential upside during construction

Growth only from settlement date

Property condition

Brand new — builder's structural warranty included

May require repairs or renovations

Customisation

Often choose finishes, fixtures and configurations

Fixed as inspected at time of sale

Investor depreciation

Maximum tax depreciation on both building and fittings

Lower depreciation available on older stock

First Home Buyer Grants

FHOG and FHSS schemes often apply to new builds.

yEligibility often restricted to new builds onl

Breaking Down the Key Benefits

Stamp Duty Savings — Often Tens of Thousands of Dollars

For eligible first home buyers, additional concessions and the First Home Owner Grant may reduce or eliminate stamp duty altogether on qualifying new builds.

Stamp duty rules change. Always confirm current eligibility with your solicitor or our advisory team.

A Longer Runway to Prepare Your Finances

With established property, settlement follows exchange within 30–90 days. You need your full finance in place almost immediately. With off-the-plan, you typically have 12–36 months between signing and settlement — time to continue saving, build your buffer, and properly prepare with your broker.
For first home buyers especially, this construction window can be the difference between being able to buy and not being able to buy.

Potential Capital Growth During Construction

If the market moves upward during the construction period — which across Victoria's growth corridors it historically has — the value of your property at settlement may exceed what you paid. You locked in your purchase price at signing. Any growth between then and settlement belongs to you.

The reverse also applies. Property values can fall. aKey Property only recommends projects in locations with strong demand fundamentals — and we assess every project against current market conditions before putting it on our panel.

Brand New, With Warranty

Every off-the-plan property comes with a builder's structural warranty. You're moving into a property no one has lived in, with modern finishes, current energy ratings, and no deferred maintenance surprises. For investors, this means lower near-term costs and stronger appeal to quality tenants.

Tax and Depreciation Benefits for Investors

New properties attract maximum depreciation deductions. An investor purchasing an off-the- plan property can claim depreciation on both the building (Division 43) and the fixtures and fittings (Division 40) — typically thousands of dollars per year in deductions that older properties simply can't match.

Speak to your accountant about the depreciation schedule applicable to your specific property.

What Are the Risks — and How We Manage Them

We won’t pretend there are no risks in off-the-plan buying. There are. The difference between buyers who succeed and those who don’t almost always comes down to the quality of their advice and the quality of the developer they chose.

Developer Reputation

Not every developer who launches a project delivers a quality one. We assess every developer on our panel against their track record, financial standing, build quality and communication. If a developer doesn't meet our criteria, we don't work with them — regardless of commission.

Valuation Shortfall at Settlement

If the market falls during construction, the bank may value your property below the contract price — meaning you'd need additional funds at settlement. This is the most commonly cited risk in off-the-plan buying. We mitigate it by selecting projects in areas with strong demand drivers and advising clients to maintain an adequate financial buffer.

Construction Delays

Delays happen. Builder capacity, council approvals and supply chains all affect timelines. We maintain ongoing contact with our developer partners so we can alert clients as early as possible to any timeline changes.

Changes to Plans or Finishes

Developers are legally permitted to make minor changes to finishes and plans during construction. We explain what constitutes a 'material' change — which may give you rights under the contract — versus a 'minor' change, before you sign.

Ready to Explore What's Available?

Our team advises on off-the-plan and house & land purchases across Victoria’s key growth corridors. We only present projects we’ve assessed, vetted, and in many cases invested in ourselves. Start with a free, no-obligation consultation. We’ll tell you what’s available, what suits your situation, and what to look out for.

Or call us: 03 9820 5880 · Monday–Friday, 8:30am–6:00pm