Buying off the plan can be an exciting way to secure a brand-new home or investment property. With modern designs, contemporary finishes and the opportunity to purchase before construction is complete, it’s easy to see the appeal.
But unlike buying an established property, you’re committing to a home before you can see the finished result. Whether you’re considering an apartment, townhouse or new development in South Australia, understanding what you’re buying and how the process works can help you make a more informed decision.
Here are five key questions to ask before you commit.
1. What exactly is included in the purchase price?
Architectural renders and display suites give you a feel for the finished property, but they don't always tell the whole story.
Review the floorplan, specifications and schedule of finishes carefully. Check which appliances, fixtures, flooring and other features are included, and whether anything shown in the marketing material is an optional upgrade.
It's also worth asking whether you can personalise any finishes and what changes the developer is permitted to make during construction. The more detail you have upfront, the clearer your expectations will be.
2. What happens between signing the contract and settlement?
Buying off the plan often involves paying a deposit when contracts are exchanged, with the balance due at settlement once the property is completed.
Deposit amounts vary between developments, so confirm how much is required, when it's payable and how the funds will be held. You should also understand the anticipated construction timeline and what happens if there are delays.
Pay attention to the contract's sunset clause and any provisions allowing changes to the plans or completion date. An independent conveyancer or solicitor can explain your rights and obligations before you commit.
3. Will your finances still work when it's time to settle?
A lot can change between signing a contract and receiving the keys. Interest rates may move, lending requirements can change and your personal circumstances might look different by the time construction is complete.
Your lender will generally reassess your finances and may arrange a property valuation closer to settlement. If the valuation is lower than your agreed purchase price, you could need additional funds to complete the purchase.
Speaking with your mortgage broker early and reviewing your finances throughout the process can help you prepare.
It's also worth checking whether you're eligible for any government grants or stamp duty relief when purchasing a new home in South Australia. Eligibility requirements can change, so confirm what's available before factoring any potential savings into your budget.
4. Who is behind the development, and what will it cost to own?
Take the time to research the developer and builder, including their experience and previously completed projects. Where possible, visit an existing development to get a sense of the quality, finishes and overall design.
Beyond the purchase price, consider the ongoing costs of ownership. Apartments and some townhouses may have strata or community title fees covering shared areas, building maintenance and other expenses.
Ask for estimated fees and understand what's included so you can budget for the property beyond settlement.
5. What happens when the property is finished?
Before settlement, buyers will generally have an opportunity to inspect the completed property. Ask how the pre-settlement inspection is arranged, what happens if you identify defects and how any outstanding work will be addressed.
It's also important to understand which warranties and building protections apply to your property, so you know what to expect once the keys are handed over.
Making an informed decision
Buying off the plan involves a few more considerations than purchasing an established property. Taking the time to ask questions, understand the contract and seek independent advice can help you navigate the process with greater confidence.
At OC Projects, we combine local market knowledge with specialist project expertise to help buyers explore new residential developments across Adelaide and South Australia. Explore our current projects and see what's taking shape.
