Off the plan pros and cons: what to weigh before you sign.

Typically you'll only have to pay a deposit to the developer and then pay the remaining balance on completion of the property (CommBank). Rising building costs between signing and completion are the developer's problem, not yours, unless the contract says otherwise.

A first home buyer of a new home, including off the plan, pays nil transfer duty on a contract dated 1 May 2025 or later, with no value cap on the home and the land (Queensland Revenue Office, updated 31 July 2026). The concession on an existing home stops at $800,000.

From 1 July 2027, negative gearing of residential property will be limited to new builds, and investors who buy new builds can choose either the existing 50 per cent CGT discount or the new inflation-based arrangements (Treasury).

You can claim the decline in value of brand new depreciating assets bought as part of a brand new property, where second-hand assets in an established apartment are in most cases not claimable after 1 July 2017 (ATO, updated 22 June 2026). Capital works on the building are claimable at 2.5% a year for 40 years.

Off the plan buyers have a 10 business day cooling off period, against usually 5 for a constructed home (NSW Government). Owner occupiers can defer paying transfer duty for up to 12 months (Revenue NSW, updated 22 June 2026).

Deposits are held in trust until settlement in both states, which the NSW Government says protects the money in the event of the developer's insolvency.

At launch you choose the floor, the aspect and the plan. By completion you choose from what is left.

The Queensland Government's first listed risk: not being able to see the final result until after you've bought the property (updated 13 April 2026). Display suites show upgrades; renders are impressions.

Lenders won't actually loan you any money until at least the property is built and they have performed a valuation of the finished product and re-evaluated your financial situation (CommBank). NSW warns the end product may be worth less than you have paid by the time it is finished. A lower valuation means more cash at settlement; our settlement valuation calculator shows how much.

Unexpected delays in the building process (Queensland Government). The ABS measured 2018-19 apartment completions at about 19 months and four weeks on average, longer than in 2015-16 (ABS, 2019). Your money and your plans are tied up for the duration.

In Queensland you can back out within 30 days of notice if a change causes material prejudice. In NSW you have 14 days from notice of a change in a material particular, and compensation if you settle is capped at 2% of the purchase price (state government pages). Smaller changes you simply live with.

Your ability to service the loan and/or resell can be impacted by a change in your financial position, market falls or interest rate rises (CommBank). Lenders are likely to reassess your loan closer to completion (NAB).

In NSW, lot entitlements and levy contributions may not be specified or even known when properties are advertised for sale (NSW Government). In Queensland the developer runs the scheme until the first AGM, within 2 months of more than 50% of lots selling or 6 months after the scheme is established (Queensland Government, updated 30 April 2024).

Queensland's Home Warranty Scheme does not cover multiple-unit dwellings more than 3 storeys above a car park (QBCC, 1 August 2024), and NSW's Home Building Compensation scheme has no cover for multi-unit buildings more than 3 storeys high. NSW buildings of four or more storeys instead get a 2% strata building bond and two inspections (NSW Government, updated 29 June 2026).

Contract clauses allowing it to be cancelled (Queensland Government). Sunset clauses now need your consent or a court order in both states, but the clause is still there, and so is the 18-month settlement rule for Queensland land under the Land Sales Act 1984.