Buying a property off the plan, which means agreeing to buy the home before it has been physically built, offers many advantageous to buyers including government discounts, time to get your living affairs sorted out and an opportunity to choose many fixtures and finishes.

For many people buying off the plan is a new experience with a sense of the unknown. However, there is often less pressure when buying off the plan and you may not be competing for the same property as many other buyers.

With an understanding of the four basic steps involved in buying off the plan it can be quite simple to buy a new home that you will love.

Step 1 – Research

The first step in buying a property is conducting some research into the area you want to live. You will quickly work out the general value of the type of properties you like and their availability. If you find a home that is being offered off the plan you will need to discuss with the selling agent some of the key details about the property.

Most people want to know when the property will start construction, when it will be finished and when they can move in. Answers to these questions may depend on how many units are in the development you are looking to buy into. Usually developers will be required to pre-sell a number of units in a development before their lenders will loan them the money to get started. This can sometimes make it hard for agents to give an exact date of when building will start. Usually once the construction has started it is a bit easier to predict when the property will be finished.

Step 2 – Buy your home

When you decide to buy off the plan you simply enter into a contract to say I will buy the property when it is finished being built. Usually you have to pay a deposit (commonly 10 percent) which is held in a trust until the property is settled. In Victoria, you may be eligible for government rebates and schemes on properties being purchased off the plan particularly if you are a first homebuyer. Find out how you can make savings by reading this post on how to avoid paying stamp duty.

During the buying step, you may be able to choose a colour scheme, special inclusions or appliances that you want in your new home. You can discuss this with your agent and the developer.

Step 3 – Watch your new home come alive

Once the contracts are signed and the construction starts, all you have to do is sit back and watch your home being built. During this time you can start to sort out your living arrangements ie finish a lease or sell your existing home, and plan your move.

Step 4 – Take possession

After the construction is completed, you will be able to inspect your new home and check to see if everything is the way you expected and if any requested inclusions have been added. If everything is fine, you make your remaining payment to settle the property and take possession.

One of the other benefits of buying a new home is that you have a few months to detect whether there are any defects that may show up, like a door that won’t close properly or a wobbly doorhandle, or something else. The builder is obliged to come back and fix them. You also enjoy the builder’s warranty that covers structural problems in the unlikely event that something more problematic may show up.

So buying off the plan can be fairly straightforward and beneficial, providing you are aware of what the basic steps are. Buying off the plan can allow you to make some generous savings on price and give you time to get yourself sorted before moving into your new home.

Have you ever purchased a new property off the plan? How did you find it?