The benefits of buying off-the-plan: A look at some of today’s best opportunities

Owning property is a coveted goal for many Australians, and purchasing off-the-plan (OTP) is becoming an attractive option for buyers looking to secure their slice of the future market.

These developments come with unique advantages, from price locks to potential capital growth before even moving in.

In this editorial, we’ll explore why OTP buying could be the right move, the key factors to consider before buying, and some standout apartment projects on the market.

What is an off-the-plan property?

This is a term used when you buy a house or unit before the building work has been completed. You make your decisions to buy based on looking at the plans and any artistic renderings of what the building will look like.

Buying an OTP apartment or townhouse provides the opportunity to customise interior finishes and layouts, while also allowing buyers to secure a property at today’s price, with potential for appreciation by the time it’s finished.

The benefits of buying off-the-plan

Price lock and time to save: One of the most significant advantages of OTP buying is price security. Buyers can secure a property at a fixed price, potentially benefiting from property market increases by the time of completion. This means that the property could be worth more than the purchase price at settlement.

“Unlike when you are building a new property, you do not have to pay an existing mortgage or rent at the same time you are making progress payments on a new build,” said Sharna Grand-Court, sales executive RCQ.

“Once the deposit is paid, there are no further payments until settlement, offering time to sell an existing property, continue to save, and put your finances into place.”

Access to government incentives: Depending on the state, OTP buyers may qualify for government incentives like the First Home Owner Grant (FHOG) or stamp duty concessions, especially for first-time homebuyers.

For investors, OTP properties offer substantial tax deductions through depreciation schedules.

“Investors may benefit from higher depreciation allowances, especially on new fittings and fixtures,” said Samuel Gardner, director of Gardner Vaughan Group.

“This can result in substantial tax deductions through depreciation schedules under Australian Tax Office rules.”

Customisation options: Many developers offer a range of choices for interior finishes, fittings, and sometimes even layout adjustments. This means that OTP buyers can tailor their future home to suit personal tastes, ensuring a higher level of satisfaction at move-in.

New property benefits: Brand-new homes often attract higher rental incomes due to their modern features, energy efficiency, and low maintenance requirements. New builds also typically include warranties, giving additional peace of mind and saving costs on repairs in the first few years​.

“New properties are sought after as well as they come with warranties unlike a house that has existed for 20 years,” said Sharna.

“Rentals are generally higher as well, as a premium can be achieved in most cases simply because it is a brand new apartment.”

What to take into consideration

Despite the benefits, OTP purchases require careful thought and research.

Buyers should:

• Research developer and builder reputation: “Look into the developer’s track record for delivering projects on time and at the promised quality,” encouraged Damon Smith, CEO of Geocon.
• Location, location, location: Look for OTP developments in growth areas or emerging suburbs with planned infrastructure improvements.
• Understand contract details: OTP contracts can be complex, including details on settlement timing, customisation options, and any included warranties. Ensure you understand these terms fully before signing​.

A spotlight on current OTP developments

For those currently shopping for an off-the-plan apartment, consider these premier choices in some of the country’s most sought-after locations.

BIANCO: Caloundra, Sunshine Coast 

Located in Caloundra’s thriving downtown, BIANCO offers a unique opportunity to invest in a region experiencing substantial redevelopment.

As the first major project on Caloundra’s main street in 20 years, BIANCO is set to become a key part of the area’s transformation. Developed by RCQ, known for its history of quality projects on the Sunshine Coast, BIANCO is expected to benefit from the area’s growth, offering buyers an early entry into a revitalised locale.

Offering just 27 off-the-plan residences across eight levels, BIANCO’s highlights include coastal views of Bribie Island, Pumicestone Passage, and beyond, luxury fittings, and easy access to nearby attractions like Bulcock Beach, shopping areas, and cultural amenities.

One purchaser beams about the development, saying, “‘We purchased early in BIANCO because we absolutely love the area, the Caloundra Boardwalk goes on forever, its close proximity to shops, restaurants, and cafes and all the exciting things planned for Caloundra make it a smart geographical investment.

“The actual building and its large, well-appointed apartments make it a smart financial investment.

“Light, natural, and coastal, BIANCO is state of the art complete with ample parking.

“BIANCO ticked all of our boxes and some.”

According to the developers, Caloundra’s redevelopment could see BIANCO appreciate significantly by its mid-2025 completion​.

The Grande on London: Canberra

Situated in Canberra’s CBD, The Grande on London is an ideal choice for those seeking convenience and connectivity, sitting proudly on the cloverleaf of Allara Street and London Circuit.

Developed by Geocon, The Grande promises access to the city’s best dining, retail, and scenic spots such as Commonwealth Park and Lake Burley Griffin. This location advantage is set to improve further with a proposed light rail stop nearby, offering residents an easy commute to other parts of Canberra.

Lifestyle is not forgotten here, with The Grande offering resident-exclusive amenities such as rooftop pool and pavilion, an outdoor pool on the rooftop, gym and yoga studio, a co-working space, library, residents-only cinema, dog wash facilities, on-site bike storage, and a grand central staircase connecting The Grande’s open green spaces with London Circuit.

Geocon, Canberra’s largest integrated developer and builder, has a strong track record, providing buyers assurance in quality and completion timelines. Expected to be completed by late 2025, The Grande is well-positioned to capitalise on Canberra’s growth as an urban hub, offering excellent resale and rental potential​.

One-, two-, and three-bedroom apartments are selling at The Grande, with one-bedders priced from $544,900*.

*Subject to availability.

Estilo on the Park: Chermside, Brisbane 

Estilo on the Park offers a blend of lifestyle and investment potential in Brisbane’s well-connected suburb of Chermside.

Developed by the award-winning Gardner Vaughan Group (GVG), Estilo stands out for its community-centric design, with regular resident get-together events planned and exclusive amenities that include lush gardens, a swimming pool, and an expansive rooftop terrace that foster social interaction and well-being.

Chermside’s strong demand for housing, combined with Estilo’s premium construction and GVG’s reputation for quality, makes this development an appealing choice. The developer anticipates strong appreciation for Estilo, thanks to its strategic location. It’s situated near essential hospitals and is directly opposite a major Westfield shopping centre and key transport links.

Towers 1 (Belleza) and 2 (Lujosa) are currently under construction and scheduled for completion this month, making them attractive to buyers and investors seeking immediate occupancy or rental opportunities. Tower 3 (Esencia) is also progressing well and is projected to be completed by early 2025.

Three-bedroom residences are still available at Estilo on the Park, selling from $1.129 million.

For more off-the-plan apartments and market insights, click here.