Things You Need to Know
What is buying Off the Plan?
When buying an apartment or townhouse off the plan (OTP), you are getting a property that has not yet been built. The construction may not yet have started or it may be partly built, at some stage of development, but the completed apartment or townhouse is still some time off from being finished.
As the completed property is not available to inspect, you will have access to the floor plan and brochures of what the finished building will look like. You will also be looking at a list of the specifications and inclusions that the property will have. A display suite may be available for inspection, which will have an example of a completed kitchen and bathroom, along with the floorboards and tiles to be used. There will often be a “samples board” showing you these items in the colour choices that may be available for selection, that is, in either the “Light” or “Dark” colour scheme.
Normally, at the signing of the contracts stage, you will need to pay a 10% deposit to secure the property. There are no further payments necessary until the property has been completed and it settles. As settlement may be 12-24 months away, it gives you the ability to continue to save during the construction period, so that at settlement time you will have more funds available for the purchase.
At the time of writing this article, there are substantial Stamp Duty Savings to be had, if purchasing OTP in Victoria, compared to other states in Australia. In Victoria you only pay stamp duty on the land value and the value of the construction on that land (if any) at the date of the sale.
How can we help?
Over the twelve years Chilli Realty has been selling property in Melbourne, we have built up relationships with most of the major developers around town. This enables us to offer you, as a buyer of an OTP unit, the convenience of one agent to deal with, who has access to and is selling just about all of the property developments available at any one point in time, in all suburbs of Melbourne.
After an initial conversation or meeting, we find out your criteria and we can show you plans, brochures and current availability of apartments and townhouses, specifically in the areas you are searching. Our aim is to only send or show you relevant information that fits your criteria specifically and that is within your budget. If you don’t know what you are after, but just want some information about how buying OTP works, what is the process and what are the benefits, then we can assist too. Gathering information is your first step to buying a unit, and we are here to help. You can think of Chilli Realty as your “One stop off the plan property shop”
How are we different?
By the time you see the cranes up it is often too late. Most of the good properties will have been sold OTP and you only see the development offered when it is marketed to the general public. We have access to most of these property developments in the pre-public launch phase of marketing, which is a great advantage to you. We can offer you a very personalised level of service where you deal with one consultant who has access to all of the properties we are currently marketing.
How can you benefit?
By purchasing an off the plan apartment or townhouse in the pre-public launch phase of marketing you can often;
- Purchase at a discount
- Have the best choice
- Benefit from developer special offers
- Save maximum stamp duty
- Attend pre-launch special events
to discuss about an off the plan property.
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