Off-the-plan buying is different because you are deciding before the home is complete. Timing, valuation, stamp duty, floor plan details and owners' corporation costs all matter. The good news is that each common mistake has a simple fix. With the right questions, a clear checklist and the right advice around you, you can move through the process with more confidence.
Mistake 1: Confusing Contract Price with Dutiable Value
Many buyers assume stamp duty is always based on the full contract price. With off-the-plan, the timing of your contract can change the dutiable value because construction costs not yet incurred at the contract date may be deducted under the concession rules. Victoria’s temporary off-the-plan concession is currently available for eligible contracts signed on or after 21 October 2024 and before 21 April 2027, with SRO guidance noting it can apply to all purchasers, including investors, companies and trusts.
How to avoid it: anchor your budget on the contract date, ask for a construction cost split and confirm eligibility with your conveyancer early.
Checklist:
✅ Contract date noted
✅ Cost breakdown requested
✅ Duty estimate checked
A larger apartment is not always the better choice if the floor plan is difficult to furnish. Buyers can become too focused on price per square metre and miss the details that shape daily life.
How to avoid it: check where the sofa, dining table and bed will sit. Look at window placement, natural light, storage, door swings and bedroom separation. A practical 2-bedroom layout with good storage can often feel more comfortable than a larger plan with wasted space.
Checklist:
✅ Furniture fit tested
✅ Storage counted
✅ Orientation checked
When buying an apartment, you are also buying into a shared building. In Victoria, an owners corporation manages common property for apartment, unit and mixed-use developments. Consumer Affairs Victoria also notes that strata buyers should understand owners' corporation fees, levies, rules and lifestyle requirements such as pets, noise and renovations.
How to avoid it: Factor owners' corporation fees and other regular property costs into your budget from the beginning, alongside council rates, utilities, insurance and general maintenance.
Buying earlier in an off-the-plan project can often give you more choice across aspects, level, outlook, natural light and floor plan layouts. As the project progresses, preferred residences may sell and some design or finish selections may no longer be available.
There may also be timing-related financial considerations. In some cases, buying earlier in the construction timeline can mean a larger portion of the build is still to be completed when you sign the contract, which may affect the dutiable value used to calculate stamp duty. This depends on your eligibility, contract timing and the project’s construction stage, so it is important to seek advice before relying on this benefit.
How to avoid it: Start by shortlisting your preferred aspect, then compare level, outlook, natural light and floor plan. Ask about the current build stage and any design or selection cut-off dates before making your decision.
Checklist:
✅ Preferred aspect chosen
✅ Level preference set
✅ Outlook and natural light compared
✅ Build stage confirmed
✅ Selection cut-off dates noted
With off-the-plan, settlement happens later. That means your lender may complete a valuation closer to settlement, not when you first sign. If your budget is too tight, the process can feel less comfortable.
How to avoid it: speak with your broker before signing and ask how they would manage a valuation gap. Keep a sensible buffer for settlement costs, moving costs and any lender requirements.
Checklist:
✅ Broker briefed
✅ Buffer planned
✅ Settlement costs reviewed
A Melbourne buyer comparing two early-stage apartments focused on three things before signing. First, they asked for the contract date and current build stage so their conveyancer could review the likely duty position. Next, they compared two floor plans using furniture measurements from their current home. Finally, they reviewed the draft owners' corporation budget with their broker, so the annual cost estimate felt clear. Instead of choosing only by price, they chose the apartment that suited their daily routine, outlook preference and settlement plan.
Before you sign,
1️⃣ Gather the contract price
2️⃣ Contract date
3️⃣ Un-incurred construction estimate
4️⃣ Owners' corporation budget
5️⃣ Inclusions schedule
6️⃣ Valuation buffer
7️⃣ Broker feedback
Together, these inputs create a simple go or refine snapshot for your conveyancer and finance team.
Under Victoria’s temporary concession, SRO guidance states the concession applies to all purchasers during the eligible contract period, including investors, companies and trusts. Always confirm your own position with your conveyancer.
Start with the floor plan, not just the price. Check natural light, storage, bedroom placement, balcony size, parking, access to transport and how the building’s shared spaces fit your daily routine. A well-designed apartment should feel practical from the first inspection of the plans.
Ask about the expected construction timeline, inclusions, settlement process, owners' corporation costs, available floor plans and any stamp duty considerations. It is also important to have your conveyancer review the contract so you understand your obligations before you commit.
Norus Projects offers thoughtfully designed new apartment opportunities across Melbourne, including Beach Point Sandringham, Sanctuary Sandringham, Riverbend Ivanhoe and Park View Burwood. Explore current opportunities and speak with the team to find a home that suits your lifestyle, timing and purchasing goals.
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