Buying Off The Plans: What Investors Need to Know | Ep. 112

In this episode, we discuss buying off the plans – the different ways you can do it, and an analysis of some of the risks and benefits as to why you would buy property off the plans. 

There are two ways to buy property off the plans: 

1. Progressive Payments, where you make payments to the developer or builder at specific milestones
2. Turn-Key, where you pay a deposit, and then nothing else until the property has been completed

Progressive payments tend to work better if you want to change the property and customise it as you go, whereas in turn-key you have less ability to customise the property as you go.

The reason you might buy property off the plans is that by definition you are buying a new property, which has looser lvr restrictions from the Reserve Bank.