Also called: Off the plan
Off-the-plan
Off-the-plan is the purchase of a property that has not yet been built or registered, based on plans and specifications. A deposit is paid at contract and the balance settles after construction is complete and the title issues.
What is an off-the-plan?
Off-the-plan is the purchase of a property that has not yet been built or registered, based on plans and specifications. A deposit is paid at contract and the balance settles after construction is complete and the title issues.
Example
A buyer signs an off-the-plan contract for a $780,000 industrial unit with settlement expected 18 months later.
Why it matters
Finance cannot be formally approved far in advance, and a valuation at completion below the contract price increases the cash required.