Buyer FAQs

Here are eight good reasons why buying off the plan is an attractive proposition in a rising real estate market.

1. Building guarantees and appliance warranties on offer for a 6 to 10 year period will provide any buyer long term peace of mind.

2. A number of astute developers have sustainability in mind when briefing architects for any new development, including cost saving additions avoiding unnecessary expenses and saving our precious planet.

3. Stamp duty savings and first home owner grants. Depending upon your individual circumstances, buying off the plan could save you tens of thousands of dollars in unnecessary expenses and taxes. This allows you to borrow less and also take years off your mortgage.

4. Customisation opportunities or bespoking allow you to make personalised changes off most off the plan purchases. Enjoy your new home from the first day of moving in, without the need to then suffer through costly renovations or borrow additional monies to pay for it.

5. Any off the plan apartment or townhouse will be at a fixed price rather than a quoted forecast range. Prior sales within the building also give the next buyer social proof that the price on offer accords with market value.

6. Additional time to save. Often the time between the day of sale an a call to settlement will be in excess of 12 months. This allows you to save more, borrow less and pocket the difference.

7. In a rising market the time between buying your new property and settlement should allow for a period of capital growth. If you have a property you need to then sell, it may be financially beneficial to delay selling until you can potentially coincide the two settlements.

8. Off the plan properties must have a percentage of the building compliant with BADS (Better Apartment Design Standards). Introduced in 2017 and applicable to apartment developments of up to four stories, it insures your new home or investment is compliant with aspects such as energy efficiency and natural light. Items rarely found , if ever, within established properties built decades ago .

And 9. And of course it’s never been lived in ….

The Victorian Budget 2021-22 includes a number of announcements related to legislation administered by the State Revenue Office.

The measures are listed here, along with their expected start date.

There are a number of State and Federal Government Schemes for Off-The-Plan Purchasers that you should be aware of as they could potentially save you thousands.

Click on the tabs below to see what’s available. Prior to proceeding you should always check with the relevant body first to see if you qualify.

First Home Owner

First Home Loan Deposit Scheme

First Home Super Saver Scheme

Foreign Purchasers

Off the Plan Benefits

Downsizer Superannuation Contributions

Victoria Homebuyer Fund

It’s not unusual that popular projects will have one or two price increases during the selling period. We recommend speaking to our Marshall White Projects sales people as soon as you become aware of a new project launching and reserve your prime position at one of our many VIP launch weekends throughout the year. Most financial experts predicted the significant increase in property prices during 2021,  so it still pays to place yourself in a position to act sooner rather than later.

Floor plans received from Marshall White Projects will have a scale allowing you to measure off room sizes, ensuring your chosen off the plan purchase is adequately equipped to meet your buying requirements. The Contract of Sale will also include a copy of the Plan of Subdivision.

Most developments (particularly boutique in size) should allow a purchaser to make a limited number of changes, affording you the opportunity to bespoke your purchase to your own taste and designs. Be careful however, as not all developments will allow changes so it’s important you discuss your options with the selling sales person prior to entering into a Contract of Sale. Permissible changes will usually be either be cost neutral (i.e. substituting “like for like”) or at the purchasers cost for their requested upgrades.

Good developers know that any imagery shown on a render or within their promotional material must be an accurate reflection of the finished product. The Contract of Sale you approve includes a list of specifications for your property. It’s worth noting that whilst these may not include brand model numbers, as the specific model will usually be updated by a supplier every 12 months. There is a substitution clause within most off the plan contracts of sale, allowing the developer to provide you with “like for like” if necessary. The developer or Project Manager should advise you if this occurs during the construction period.

All inclusions are detailed within the Contract of Sale. You should check these carefully prior to proceeding, ensuring the expected inclusions are detailed. Typically, items such as curtains or blinds and washer/dryers are not included for an off the plan sale.

We recommend receiving advice from your own legal professional. Purchasing off the plan can be a relatively straight forward process if you’re fully informed from the start.

Your agreed deposit (cash) must be held in trust by the vendor’s legal representative with accrued interest then being paid to the vendor at settlement. Some developers may consider a shared arrangement which should be discussed with your Marshall White Project sales agent at the time you’re ready to proceed. Once the initial deposit is paid (as per the Contract of Sale), there are no additional progress payments required until the balance of the purchase price is remitted at settlement.

Most off the plan Contracts of Sale will have a “sunset clause” or “registration period” which defines the length of time where both the vendor and purchaser are bound to the Contract of Sale. Usually this period ranges anywhere from 24 to 60 months. Whilst this period is typically longer than the actual construction period, these conditions are often a requirement of the vendors funder’s lending policy, covering them in the event of a supervening event (floods, earth quake and natural disaster etc.).

The Victorian Government recently passed new laws that remove the ability of a developer to use sunset clauses, after intentionally delaying any building project, to then cancel previously signed contracts. Any buyer who is unsure as to whether the new laws apply to their specific contract and particular circumstances should seek their own legal advice.

Delays to construction commencing can happen for a number of reasons. Typically, it’s as a result of continued inclement weather, council or planning requirements or perhaps the developer was unable to commence immediately owing to insufficient sales and as a result hadn’t satisfied the criteria for a construction loan. So, it’s prudent to ask an agent is there sufficient sales to start building, if so, when is construction anticipated starting and more importantly completing?

The owner corporation’s fees are determined by the owner’s corporation manager. Before proceeding these estimated quarterly amounts should be provided to you by your Marshall White Projects salesperson, which set out your contribution to communal items and the ongoing maintenance of the common areas, building and public liability insurance. Note, these fees won’t be applicable until settlement has taken place.

Any Contract of Sale for residential property (including an off the plan purchase) provides the purchaser (only) with a three day cooling off period. This is three clear business days, expiring at midnight on the third working day. You should be aware however, there is a penalty of 0.2% of the purchase price given to the vendor should you subsequently withdraw (in writing) after the Contracts have exchanged. It’s always prudent to do your homework before entering into a Contract of Sale.

Before proceeding with any off the plan purchase it’s a good idea to obtain prior advice on the rights and responsibilities afforded to you within any off the plan Contract of Sale. As an example, changes such as an alteration to a plan of sub division affecting common areas must now be bought to your attention prior to the settlement period. Speak to your legal professional if this is brought to your attention.

Despite the unprecedented optimism regarding the Melbourne real estate market,  there are no guarantees of any markets continued growth during your building’s construction. Within a time of market decline or a rise in interest rates, you are still expected to complete your property purchase at settlement. Should this create difficulties, then it’s crucial you speak to your Marshall White Projects sales representative at an early date to discuss your circumstances. Also speak to your legal representative regarding your options of either nominating your sale and your continued legal obligation under the original Contract of Sale.

A nominee sale can provide an option for someone who has purchased a property (but is unable or unwilling to settle) , to find another buyer to step in and to then have the contract transferred to their name (nominee) in order to complete a settlement.

It’s worth noting that there has always been a Common Law right to nominate independent of any contractual right. A purchaser however will remain liable under a nominated contract with the nominee merely being permitted to exercise the purchaser’s rights.

We always recommend that purchasers obtain advice from their legal representative about whether nominating a nominee purchaser under a contract of sale is the right move for them.

Prior to proceeding, talk to us about this very relevant issue and ask if cladding is to used on your building – this may include the use of aluminium composite panels (ACP) or expanded polystyrene (EPS)

We ask all of our developer clients to provide us with full details of their development prior to going to the market place.

With off-the-plan apartments and townhouses, property values may vary during the construction period. If they do, the bank valuation may be lower than your purchase price.

So, what are your options?

a. Dispute the original valuation;

You can dispute the valuer’s original findings by providing sales evidence of similar properties in the area.

b. Request a valuation from a different valuer;

You can ask your lender to chose another valuer from its panel and perform another valuation. Most lenders will have a panel of valuation firms or valuers so a different valuer could provide a different result.

c. Cover the shortfall from somewhere else;

If a new valuation fails to resolve the problem, you might have to look elsewhere to secure funds to cover the shortfall, such as borrowing from a family member or securing a personal loan.

d. Or get another lender;

Going down this path needs to happen quickly as often the time between the valuer being allowed onto the site and then you been called to settle could then be a matter of weeks, not months.

In 1991 Mr. Kerry Packer was asked by a Senate Committee to comment on paying taxes , replying “as a government you’re not spending it that well, that we should be donating extra”!

Duty’s and taxes are a necessity for owning property and buying off the plan is typically no exception.

It is important however that you understand the tax and duty benefits applicable for an off the plan purchase and how they apply to your own individual circumstances.

The State Revenue Office provide a summary on the link below:

https://www.sro.vic.gov.au/calculators/land-transfer-calculator

Alternatively look to our State and Federal Government announcements to see what you qualify for and speak to your own legal representative or tax professional to find what’s right for you.

Well before entering into a Contract of Sale for an off the plan purchase, you should discuss your individual finance requirements with your preferred lender and/or broker. Marshall White Projects can also assist with recommendations for finance, allowing you to secure an option best suited to your property needs. Usually at three to four months from a forecast completion date, you should again speak to your lender ensuring they are ready to assist you in meeting your settlement commitments.

Depreciation benefits are only applicable for investors. A quantity surveyor will prepare a depreciation schedule, allowing significant depreciation benefits to be then offset against your taxable income. For advice relative to your own personal circumstances we recommended speaking to your tax professional.

The SRO offers a range of options for first home owners, saving you tens of thousands of dollars. To ensure you are aware of the advantages available to you, please visit www.sro.vic.gov.au/first-home-owner

A project manager or developer should send out regular construction updates during your property’s construction period. Alternatively, you may be directed to the developers dedicated website with information and pictures of your new purchase under construction. A summary of all of our projects under construction can now be viewed by clicking on Construction Updates  .It is important that you have your finance in place at an early date and respond promptly to a request for a final inspection from either the developer or the developer’s appointed settlement company.

Here are eight good reasons why buying off the plan is an attractive proposition in a rising real estate market.

1. Building guarantees and appliance warranties on offer for a 6 to 10 year period will provide any buyer long term peace of mind.

2. A number of astute developers have sustainability in mind when briefing architects for any new development, including cost saving additions avoiding unnecessary expenses and saving our precious planet.

3. Stamp duty savings and first home owner grants. Depending upon your individual circumstances, buying off the plan could save you tens of thousands of dollars in unnecessary expenses and taxes. This allows you to borrow less and also take years off your mortgage.

4. Customisation opportunities or bespoking allow you to make personalised changes off most off the plan purchases. Enjoy your new home from the first day of moving in, without the need to then suffer through costly renovations or borrow additional monies to pay for it.

5. Any off the plan apartment or townhouse will be at a fixed price rather than a quoted forecast range. Prior sales within the building also give the next buyer social proof that the price on offer accords with market value.

6. Additional time to save. Often the time between the day of sale an a call to settlement will be in excess of 12 months. This allows you to save more, borrow less and pocket the difference.

7. In a rising market the time between buying your new property and settlement should allow for a period of capital growth. If you have a property you need to then sell, it may be financially beneficial to delay selling until you can potentially coincide the two settlements.

8. Off the plan properties must have a percentage of the building compliant with BADS (Better Apartment Design Standards). Introduced in 2017 and applicable to apartment developments of up to four stories, it insures your new home or investment is compliant with aspects such as energy efficiency and natural light. Items rarely found , if ever, within established properties built decades ago .

And 9. And of course it’s never been lived in ….

The Victorian Budget 2021-22 includes a number of announcements related to legislation administered by the State Revenue Office.

The measures are listed here, along with their expected start date.

There are a number of State and Federal Government Schemes for Off-The-Plan Purchasers that you should be aware of as they could potentially save you thousands.

Click on the tabs below to see what’s available. Prior to proceeding you should always check with the relevant body first to see if you qualify.

First Home Owner

First Home Loan Deposit Scheme

First Home Super Saver Scheme

Foreign Purchasers

Off the Plan Benefits

Downsizer Superannuation Contributions

Victoria Homebuyer Fund

Many of our downsizers are in the fortunate position of determining their own timing with regards to ultimately moving from their family home.

Those buyers who are risk adverse may choose to sell within the same market they purchased and then willingly make two moves.

Others will follow their new homes progress on our construction portal and then sell the family home closer to completion

It’s always prudent to talk to one of our local residential experts with regards to a market appraisal or simply discuss current market conditions.

Often for a particular project the vendor is a developer rather than the builder, so a builder will need to be appointed.

Regularly the tender process for a builder’s appointment runs consecutively with a projects launch to the market.

If the tender process is still ongoing, ask to see the panel of builders on the tender list and then do your homework by looking at their experience either online or by driving past completed projects.

Since 1 July 2018, eligible older Australians wishing to downsize have been able to contribute up to $300,000 into superannuation from the sale of their home. Existing contribution caps and restrictions will not apply to the downsizer contribution. This measure endeavours to free up larger homes for growing families. Find out more

Here are eight good reasons why buying off the plan is an attractive proposition in a rising real estate market.

1. Building guarantees and appliance warranties on offer for a 6 to 10 year period will provide any buyer long term peace of mind.

2. A number of astute developers have sustainability in mind when briefing architects for any new development, including cost saving additions avoiding unnecessary expenses and saving our precious planet.

3. Stamp duty savings and first home owner grants. Depending upon your individual circumstances, buying off the plan could save you tens of thousands of dollars in unnecessary expenses and taxes. This allows you to borrow less and also take years off your mortgage.

4. Customisation opportunities or bespoking allow you to make personalised changes off most off the plan purchases. Enjoy your new home from the first day of moving in, without the need to then suffer through costly renovations or borrow additional monies to pay for it.

5. Any off the plan apartment or townhouse will be at a fixed price rather than a quoted forecast range. Prior sales within the building also give the next buyer social proof that the price on offer accords with market value.

6. Additional time to save. Often the time between the day of sale an a call to settlement will be in excess of 12 months. This allows you to save more, borrow less and pocket the difference.

7. In a rising market the time between buying your new property and settlement should allow for a period of capital growth. If you have a property you need to then sell, it may be financially beneficial to delay selling until you can potentially coincide the two settlements.

8. Off the plan properties must have a percentage of the building compliant with BADS (Better Apartment Design Standards). Introduced in 2017 and applicable to apartment developments of up to four stories, it insures your new home or investment is compliant with aspects such as energy efficiency and natural light. Items rarely found , if ever, within established properties built decades ago .

And 9. And of course it’s never been lived in ….

The Victorian Budget 2021-22 includes a number of announcements related to legislation administered by the State Revenue Office.

The measures are listed here, along with their expected start date.

There are a number of State and Federal Government Schemes for Off-The-Plan Purchasers that you should be aware of as they could potentially save you thousands.

Click on the tabs below to see what’s available. Prior to proceeding you should always check with the relevant body first to see if you qualify.

First Home Owner

First Home Loan Deposit Scheme

First Home Super Saver Scheme

Foreign Purchasers

Off the Plan Benefits

Downsizer Superannuation Contributions

Victoria Homebuyer Fund

For Contracts entered into for buying or building a new home valued up to $750,000 on and from 1 July 2017 until 30 June 2020, you may be eligible for a First Home Owner Grant (FHOG).

(With an off the plan property, the total Contract price must not exceed $750,000 to be eligible).

If you are eligible for the FHOG and the home you are buying is in regional Victoria, you may receive $20,000. If the home is not in regional Victoria, the grant is $10,000.

Your new home can be a house, townhouse, apartment, unit or similar, but it must be valued at $750,000 or less and be the first sale of the property as residential premises. It cannot be an investment property or a holiday house.

However, for the stamp duty exemption/concession this is determined by the dutiable value for an off the plan property (the dutiable value is the contract price minus the construction or refurbishment costs incurred on or after the contract date). The dutiable value must be below $600,000 for the exemption, and a first home buyer duty concession is also available for a principle place of residence with a dutiable value from $600,001 to $750,000.

Depreciation benefits are only applicable for investors. A quantity surveyor will prepare a depreciation schedule, then potentially allowing significant depreciation benefits to be then offset against your taxable income. For advice relative to your own personal circumstances we recommended speaking to your tax professional.

Whilst they can vary, typically under a guaranteed rent arrangement the landlord assigns your property to a letting agent for a specified period of time, in return for providing you a guaranteed income.

A Guaranteed Rental Return (GRR) is a future rental income ,guaranteed by the developer or management company to the property purchaser for a contracted period (typically for one to two years)

Usually the agreed rental amount will be paid into the investor’s bank account immediately after the property settles.

Potentially you can receive rent from day one, even when there is no tenant. It also get you past the competition of other rental properties within the same building hitting the leasing market all at the same time.

Speak to your Marshall White Project salesperson as to what’s on offer.

Your Marshall White salesperson will provide you with a forecast rental appraisal for your off the plan property.

It’s worth remembering that these estimates are at today’s market value and may vary at settlement.

It’s worth checking in during construction with our rental department and learn firsthand what the rental market is doing in your area.