How it works
You sign a contract for a home that hasn't been built, pay a deposit (often 10%, sometimes covered by a deposit bond), and settle when the building is complete. Your home loan is formally approved close to settlement, not when you sign, because lenders only issue approvals that last a few months.
The finance risk most buyers miss
Your loan is assessed when the building is finished, against your income, debts and rates at that time, and against a valuation done near completion. If rates rise, your circumstances change, or the property values below the price, you may be able to borrow less than you expected while still being bound to settle. Keep a cash buffer and avoid taking on new debts between signing and settlement.
Stamp duty on off the plan purchases
- NSW: owner occupiers may defer duty by up to 12 months; it is due at the earliest of 15 months after signing, settlement or assignment. First home buyers pay no duty up to $800,000.
- Victoria: the off the plan concession can reduce the dutiable value by excluding construction after you sign. First home buyers pay no duty up to $600,000.
- Queensland and South Australia: eligible first home buyers pay no duty on new homes and off the plan apartments at any price.
- WA: the off the plan concession means no duty on dwellings bought before construction up to $800,000, tapering to a 50% concession above $900,000, and it now covers survey strata dwellings as well as apartments and townhouses.
- ACT: eligible buyers under the Home Buyer Concession Scheme pay no duty from 1 July 2026, and there are exemptions for some off the plan units.
Use the stamp duty calculator for the standard figure in your state, and ask your conveyancer whether an off the plan concession reduces it further.
Sunset clauses and delays
Most contracts include a sunset date: if the building isn't finished by then, either party may be able to end the contract. Several states restrict developers from using sunset clauses to cancel and resell at a higher price. Read the clause carefully, and keep your loan pre-assessment current if completion is delayed.
Sources
- Revenue NSW: off the plan property purchases (duty deferral), checked 21 October 2026
- SRO Victoria: first home buyer duty (vacant land assessed on land value only), checked 21 October 2026
- Queensland Revenue Office: first home (new home) and vacant land concessions, checked 21 October 2026
- RevenueSA: first home buyer relief on new homes and land, checked 21 October 2026
- WA Government, 7 May 2026: first home buyer duty thresholds, off the plan relief, checked 21 October 2026
- ACT Revenue Office: about conveyance duty (house and land, off the plan, separate building contracts), checked 21 October 2026
General information only, not credit advice. It doesn’t take your objectives, financial situation or needs into account. Rules and figures change; check them, or talk to Joshua, before you rely on them.