Buying Off-the-Plan: Risks and Rewards
Christian Stevens, Mortgage Broker
Published December 6, 2025, 1:19 P.M
Learn the risks and benefits of buying off-the-plan in Australia, including valuation issues, finance timelines, and market considerations. Flint Group explains how off-the-plan finance works and helps you secure the right lender from contract to settlement.
Key Facts
- Buying off-the-plan involves purchasing a property before construction is complete, based entirely on plans, specifications, and the developer’s schedule.
- It can provide price certainty, more time to save, and the chance to benefit from market growth before settlement.
- Risks include valuation shortfalls, shifting market conditions, construction blowouts, finance expiry, and complex contract terms.
- This strategy is common among first home buyers, investors and downsizers — especially in high-density or master-planned areas.
- Flint helps buyers assess lending policies, timelines and risk factors to ensure your off-the-plan purchase stays finance-ready from start to finish.
What Is Buying Off-the-Plan?
Buying off-the-plan means signing a contract to purchase a property — usually a townhouse or apartment — before it is built or completed. In many cases, construction hasn’t yet started.
You generally pay a deposit upfront (commonly 10%), with the remaining balance due at settlement once the project is finished — typically 12–36 months later.
This approach lets buyers enter the market earlier, secure a new-build dwelling, and prepare finances over a longer timeline.
Why Buy Off-the-Plan?
Potential Advantages:
- Price certainty: Secure the purchase price now, even if local property values rise before completion.
- Time to save: Extra months or years to build your savings, improve your borrowing capacity, or reduce personal debts.
- Stamp duty incentives: Some states offer stamp duty concessions or exemptions on new builds for first home buyers.
- Tax benefits for investors: New properties generally offer strong depreciation schedules and lower maintenance demands.
- Modern living: New-build homes feature updated appliances, energy efficiency upgrades, smart layouts and builder warranties.
Risks to Consider
Common Challenges:
- Valuation risk: The completed property may be valued lower than the contract price, meaning you need a larger deposit to bridge the gap.
- Market shifts: If the market softens during construction, you may end up owing more than the property is worth at settlement.
- Construction delays: Weather issues, builder shortages, supply chain problems or developer-related setbacks can all delay delivery.
- Contract complexity: Off-the-plan contracts often favour the developer; independent legal review is crucial.
- Developer solvency: If the builder collapses, it can jeopardise project timelines — or even your deposit in rare cases.
Finance and Settlement Tips
- Get early finance guidance: Pre-approvals typically expire well before construction concludes, so you’ll need updated borrowing checks.
- Build a financial buffer: Allocating extra savings helps protect you if valuations fall or lender policies tighten.
- Monitor your financial situation: Income changes, employment shifts, or new debts may impact your future borrowing power.
- Choose flexible lenders: Some banks offer products designed for long settlement periods — Flint helps match you with lenders who support off-the-plan finance.
Who Should Consider It?
- First home buyers wanting predictable pricing and access to new-build concessions
- Investors seeking depreciation benefits, strong rental demand and low-maintenance homes
- Downsizers who want modern inclusions, accessible layouts or time to sell an existing home
With the right protections, buying off-the-plan can be a smart strategy — but it requires informed decision-making and thorough preparation.
📞 Want to Buy Off-the-Plan with Confidence?
At Flint, we help:
- Assess off-the-plan timelines, risks and long-term suitability
- Coordinate deposits, lending strategies and pre-settlement finance reviews
- Match you with lenders who support staged or long-settlement loans
Talk to Flint today and make sure your off-the-plan purchase pays off — with clarity and confidence from contract signing to final settlement.
Recommended Articles
Home Loans
Downsizing with Confidence: Financial Tips for Over-50s
Aug 18, 2025
Home Loans
Unlocking Financial Potential for Senior Executives: Leverage...
Aug 18, 2025
Home Loans
The Essential Guide to Deposit Bonds: What Homebuyers and...
Aug 18, 2025
Monthly Newsletter
Subscribe and be the first to know about what’s happening in the market.
Contact Us Today
Learn more about how we can help you achieve your financial goals.
Don’t worry, there’s no commitment. Strategic guidance guaranteed.