Buying off the Plan

I often get asked about the pros and cons about Buying off the Plan, and now that I’m trying to also market one of our own projects ‘off the plan’ I’m looking very critically at how to advise potential customers of the advantages.

Residential Developments are usually sold ‘off the plan’ to satisfy bank lending conditions. Banks require guaranteed funds to cover moneys lent, to de-risk the process – not only for themselves but also to the developer, and purchasers.

A lot has been written about the advantages and pitfalls, in summary:

…It looks so appealing 
Is it a trap? – and what to look out for 

You only need to pay a deposit to secure the property, and you have more time to secure your funding for the settlement.

  •   The ‘off the plan’ price is often discounted from today’s price, so the Developer can secure funds to proceed. The completed building will often then be marketed at the new market value
Is the price inflated by other incentives – such as a rent guarantee?


  • If you can’t get a loan you may loose your deposit
    Do your homework first and get a         pre-approval for a loan
Stamp duty savings


  •    You only pay stamp duty on the value of the land component – not including the building works
  •   First home buyers can save even more stamp duty – depending on the sales price – in Victoria, a First Home Buyer is exempt from Stamp Duty up to $600,000
Oversupply of similar products, means you are not differentiated when you come to resell

  •  Check out the local market and visit the neighbourhood – what makes this one different, or the same??
Tax depreciation

  •  Investors can achieve larger Depreciations on new properties
A new property to which you are the first to own

  •  New residential buildings in Victoria come with a seven-year building guarantee
  •  You get quality fixtures and finishes
  • You may have selection options for materials and colours
Is the builder Reputable? And financially secure

  •  Check what they have done before and ask for references


The quality of the finishes may not be to the standard you imagined

  •  Be sure to check the contract documents to ensure the fixtures and finishes schedule is included.



Even With the media calling the slowing of the market, and banks being more cautious since the Royal Commission into Banking, we still have a shortage of housing, and our local Victorian Population is still growing at some 120,000 people a year.

People need to be housed, and buying off the plan can assist you to secure a price in today’s market. But you must remember to do your homework first!

Our project at 63 O’Connor street in Reservoir are a collection of 8 two and three-bedroom townhouses. Each individually designed, on their own piece of land.

They have been designed with the Owner Occupier in mind; large bedrooms, ensuites and second bathrooms,  and living areas with northern aspects opening to large decked areas to private open space, and overlooking the adjoining reserve.

The advantage to purchasing off the plan in this instance include:
  • Fantastic individually designed townhouses – that are unique for the area
  • Quality finishes and fixtures, with optional colour schemes, all specified in the contracts
  • Locking in a purchase price, with a deposit, that will not settle until building work is completed, in about 12 months
  • Stamp duty savings,
  • Tax depreciation schedules – already prepared for the keen investor
  • Good local rental demand
  • 7 Year Building Guarantee, by reputable builders with collectively some 90 years experience in residential construction (we can show you lots)
  • No hidden incentives

Yes, purchasing a property can be scary, especially when it doesn’t exists yet. But BY Projects can guarantee we have the knowledge to guide you through the process!


Barbara Yerondais
Director and Principle Architect
BY Projects Architecture



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