BUYING OFF THE PLAN

Buying off the plan — what you need to know.

Purchasing a property before it's built can offer real advantages — but it also comes with specific risks that require careful finance planning. We help Perth buyers and investors navigate off-the-plan purchases with clear eyes and the right structure in place.

The contract is signed today. The property won't exist for 12 to 24 months. A lot can change — and your finance needs to account for that.

Buying off the plan means exchanging contracts on a property that hasn't been built yet — often an apartment, townhouse, or land-and-house package. You pay a deposit (usually 10%) at signing, and the balance is settled once construction is complete, which can be anywhere from 12 months to 3 years later.

This creates a unique challenge: your finance approval happens before the property exists. The bank that pre-approves you today may assess things differently by the time settlement arrives. Property values can move — upward or downward — during the build period. Your own financial circumstances may also change.

WMP Finance helps buyers approach off-the-plan purchases with a clear strategy. We work through your finance position at the time of signing, flag what could change during the build period, and plan ahead so settlement can proceed without last-minute stress.

Why some buyers choose off the plan.

Stamp duty savings

In Western Australia, off-the-plan purchases can qualify for stamp duty concessions. This can represent a significant saving, particularly for owner-occupiers and first home buyers. Eligibility conditions apply — confirm with your conveyancer.

Depreciation benefits

New properties attract higher depreciation deductions than established ones. For investors, this can meaningfully improve after-tax cash flow. A quantity surveyor's depreciation schedule will quantify this for your specific property.

Time to prepare

The gap between exchange and settlement gives you time to save additional funds, prepare for ownership costs, and have your finance fully sorted before the key date arrives.

Capital growth potential

In a rising market, locking in a purchase price today can mean settling on a property worth more than you paid. This has been a common outcome for buyers in strong Perth development corridors in recent years.

What to consider before you sign

Off-the-plan purchases carry specific risks that don't apply to established property. None of these are reasons to avoid this type of purchase — but they are reasons to go in with a clear plan.

Valuation risk — If the property is valued at settlement for less than the contract price, you may need to cover the difference from your own funds. Lenders lend on the lower of purchase price or valuation.
Finance expiry — Your pre-approval from today will likely expire before settlement. The finance environment at settlement may be different to what it is now.
Developer risk — Developers can face delays or, in rare cases, fail to complete a project. Understanding the developer's track record and the contract terms matters.
Changes in your circumstances — A change in employment, income, or financial position during the build period can affect your ability to settle.
Building specification changes — Contracts may allow developers to make minor changes to materials, finishes, or layouts. Review the sunset clause and substitution clauses carefully with your conveyancer.

WMP Finance works with your conveyancer, not instead of them. Always obtain independent legal advice before signing an off-the-plan contract.

What WMP Finance does for off-the-plan buyers.

1.
Review your position before you sign

Before any contract is exchanged, we assess your borrowing capacity based on your current income, debts, and the target purchase price. We flag any factors that could complicate settlement — so you go in with eyes open.

2.
Structure the deposit and finance early

We confirm how your 10% deposit will be held, how this interacts with your overall cash position, and identify the right lender for your situation now — knowing we'll need to revisit this closer to settlement.

3.
Monitor your position during the build

We keep track of your finance position throughout the construction period — alerting you to any lender policy changes, rate movements, or factors that could affect your settlement readiness.

4.
Arrange formal approval for settlement

As the completion date approaches, we manage the formal finance application and approval, coordinate with the developer's solicitor and your conveyancer, and make sure everything is in place for settlement day.

Frequently Asked Questions

Can I get pre-approved for an off-the-plan purchase?

Yes — lenders will assess your borrowing capacity based on your current financial position and the contract purchase price. However, formal approval (including valuation) usually only happens as you approach settlement. The gap between contract and settlement can be significant, so we monitor your position throughout.

What happens if the property is valued below what I paid?

This is called a shortfall, and it means your lender will only advance funds based on the lower valuation. You'll need to cover the gap from your own funds. We factor this risk into your planning from the start, so you're not caught short at settlement.

Does stamp duty work differently for off-the-plan purchases in WA?

Yes. In Western Australia there are concessions available on off-the-plan purchases in certain circumstances. The rules are specific and subject to change — your conveyancer is the right person to advise on eligibility and the current concession rates.

What if construction takes longer than expected?

Build delays are common. Most contracts have a sunset clause that specifies the maximum time the developer has to complete the project. If the developer exceeds this period, you may have grounds to rescind the contract and recover your deposit. Review your contract's sunset clause carefully with your conveyancer before signing.

Frequently Asked Questions

Can I get pre-approved for an off-the-plan purchase?

Yes — lenders will assess your borrowing capacity based on your current financial position and the contract purchase price. However, formal approval (including valuation) usually only happens as you approach settlement. The gap between contract and settlement can be significant, so we monitor your position throughout.

What happens if the property is valued below what I paid?

This is called a shortfall, and it means your lender will only advance funds based on the lower valuation. You'll need to cover the gap from your own funds. We factor this risk into your planning from the start, so you're not caught short at settlement.

Does stamp duty work differently for off-the-plan purchases in WA?

Yes. In Western Australia there are concessions available on off-the-plan purchases in certain circumstances. The rules are specific and subject to change — your conveyancer is the right person to advise on eligibility and the current concession rates.

What if construction takes longer than expected?

Build delays are common. Most contracts have a sunset clause that specifies the maximum time the developer has to complete the project. If the developer exceeds this period, you may have grounds to rescind the contract and recover your deposit. Review your contract's sunset clause carefully with your conveyancer before signing.

WMP Finance provides credit assistance only. The information on this page is general in nature and does not constitute financial advice. Your individual circumstances, tax position, and investment goals will affect what strategy is right for you. We recommend speaking with a qualified financial adviser and accountant in addition to your mortgage broker. WMP Finance holds Australian Credit Licence 384324.