Do you know how off-the-plan buying works in Werribee?

Buying off-the-plan gives you time to prepare

Purchasing a property before it's built offers a longer timeline between contract and settlement. You sign now, the developer builds, and you settle when construction is complete, often 12 to 24 months later. That extended period gives you time to save, strengthen your financial position, and arrange finance without the pressure of an immediate settlement deadline.

Werribee's ongoing development around the CBD and expanding rail precinct has attracted several apartment and townhouse projects suited to buyers entering the market. The combination of state stamp duty concessions and federal home loan support makes this a genuine option for those starting their property journey.

The deposit structure is different

Off-the-plan contracts typically require a 10% deposit, paid in stages. You may pay 5% on signing and the remaining 5% within 60 or 90 days, depending on the contract terms. Some developers allow staged payments across the construction period. This staged approach can suit buyers who are still building their deposit or waiting for tax returns, bonuses, or contributions from family.

Under the Australian Government 5% Deposit Scheme, you can purchase with a 5% deposit if the property falls within the applicable price cap. In Victoria, the cap for capital city and regional centres is $950,000. Werribee is classified under that cap. Developers sometimes accept contracts under this scheme, but not all properties will qualify. Confirmation from your lender is required before signing.

Consider a buyer who signs a contract in mid-2026 for a new two-bedroom apartment priced within the scheme cap. They provide 5% on contract signing. The developer completes the build in early 2028. The buyer settles at that point. During the two-year construction period, they continue working, save additional funds, and apply for first home buyer stamp duty concessions available in Victoria. The extended timeline gives breathing room that purchasing an existing home does not.

Stamp duty concessions apply at settlement

Victorian first home buyers benefit from a full stamp duty exemption on properties valued up to $600,000, with a sliding concession between $600,001 and $750,000. This applies to both new and established homes. You must move into the property within 12 months of settlement and live there for at least 12 months continuously.

Victoria also offers an off-the-plan concession to all buyers, not just first home buyers. When you sign a contract for a property not yet titled or substantially completed, duty is calculated on the land value at the contract date only, not the final property value at settlement. This concession applies to contracts signed on or before 31 October 2026. The land value is generally lower than the completed property value, reducing your duty liability.

If you qualify for both the first home buyer exemption and the off-the-plan concession, the most beneficial outcome applies. In many cases, the first home buyer exemption eliminates duty entirely if the property value is within the threshold, making the off-the-plan concession redundant. The concession still benefits buyers purchasing above the first home buyer threshold or buyers who do not meet the residency requirements for the exemption.

Pre-approval timing matters

You can apply for pre-approval before signing the contract, during construction, or closer to settlement. Lenders generally issue pre-approval valid for three to six months. If your settlement is 18 months away, early pre-approval will expire well before you need it.

A more measured approach is to obtain pre-approval three to six months before your expected settlement date. You will have a clearer idea of your income, employment stability, and any changes to your financial position. Lenders will assess the property value based on their valuation at the time of final approval, not the contract price. If the completed property values lower than the contract price, the lender may only lend against the lower valuation, requiring you to cover the difference.

If you are using the 5% Deposit Scheme, both the purchase price and the lender's assessed value must fall within the applicable cap. The scheme is administered through participating lenders, and you cannot apply directly to Housing Australia. Confirm your lender participates in the scheme before signing your contract.

Financing the deposit during construction

Most lenders do not provide finance for the initial deposit paid on signing. You need genuine savings, a gift from a family member, or funds from the First Home Super Saver Scheme. The FHSS Scheme allows you to make voluntary contributions into your super fund and later withdraw up to $50,000 toward your deposit. Contributions are taxed at 15% rather than your marginal rate, offering a modest tax benefit.

You apply to the ATO for a determination before signing your contract. The funds are released to you, not directly to the developer or vendor. Processing times vary. Plan for at least a few weeks between lodging your application and receiving the funds. Some buyers use the extended contract-to-settlement period to continue making contributions, but you cannot access those funds until after you have already signed the contract.

If a family member is gifting part or all of your deposit, lenders require a signed declaration confirming the funds are a gift, not a loan. The declaration typically states the donor has no interest in the property and does not expect repayment. Lenders also want to see the funds in your account for at least three months before settlement, or a clear paper trail showing the transfer.

Sunset clauses and contract terms

Off-the-plan contracts include a sunset clause, which sets a final date by which the development must be completed. If construction is not finished by that date, either party may be entitled to terminate the contract. Developers sometimes seek extensions to the sunset date if delays occur. You may need to agree to that extension or risk the contract being rescinded.

Read the contract carefully before signing. Check whether the developer can make changes to the floor plan, finishes, or shared facilities. Some contracts allow minor variations without your consent. Others require approval for material changes. If the final apartment differs significantly from what you signed for, your options depend on the terms in the contract.

Legal advice is worth considering, particularly if this is your first property purchase. A conveyancer or solicitor familiar with off-the-plan sales can identify unfavourable terms and explain your rights if the developer delays or alters the project. The cost of that advice is modest compared to the financial commitment you are making.

Settlement and valuation risk

When the property is complete, the lender will order a valuation. The valuer assesses the completed property, not the contract you signed two years earlier. If the market has softened or the development has not met expectations, the valuation may come in below your contract price. The lender will only lend a percentage of the lower figure.

In that scenario, you need to make up the difference in cash or renegotiate with the developer, which is rarely an option. This is called valuation risk, and it sits with you as the buyer. Off-the-plan purchases during rising markets can work in your favour if values increase during construction. During flat or falling markets, the reverse can occur.

Some lenders are more conservative with off-the-plan valuations, particularly in areas with high supply of new apartments. Werribee has seen consistent residential development, and lenders will consider comparable sales of similar new properties in the area when forming their assessment. If several developments settle around the same time, that can place downward pressure on valuations.

Final steps before settlement

A few weeks before settlement, your lender will request final documents including a copy of the completed contract of sale, evidence of your deposit payment, and confirmation from the developer that the property is ready. You will also need buildings insurance in place from settlement date, and your lender will require proof of that cover.

Your conveyancer or solicitor will conduct final searches and prepare settlement paperwork. You should inspect the property before settlement to confirm it matches the contract specifications and that any defects are noted. If defects exist, you can request they be rectified before settlement or negotiate a retention of funds until repairs are completed. The developer is required to provide you with the occupancy certificate or certificate of final inspection before you take possession.

Once settlement occurs, you own the property. You need to move in within 12 months to meet the residency requirement for the Victorian first home buyer stamp duty exemption. That 12-month period starts from settlement, not from contract signing.

Purchasing off-the-plan asks for patience, a clear understanding of the contract, and realistic expectations about timing and valuation. The extended settlement period offers time to prepare, but it also introduces uncertainty. Taking the time to understand each stage and having the right support around you lets you move forward with clarity. Call one of our team or book an appointment at a time that works for you.

Frequently Asked Questions