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Comparison rates above are based on a home loan of $150,000 for 25 years. WARNING: The comparison rates are true for the example given only and may not include all fees and charges. Different terms, fees or loan amounts might result in a different comparison rate.

Important Information:

Any information provided does not constitute an offer of credit and are examples of what may be available to you based on the information available. It does not take into account any product features or any applicable fees. Lending criteria and the basis upon which we assess what you may be able to afford may change at any time without notice. For Fixed Rate home loans, break costs may be payable which can be significant if you change the whole or part of your fixed rate loan or where additional or early repayments are made during the fixed rate period.

All applications are subject to lender assessment and approval. Cashback offers may be provided by some lenders and may only be available for particular products, terms and conditions apply.

© 2025 Ello Lc Pty Ltd ACN 662 742 645. Australian Credit Representative Number 544008. Ello is a Credit Representative of QED Credit Services PTY LTD (Australian Credit Licence number 387856).

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What is the Disadvantage of Buying Off the Plan?

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Ello
Cover image for What is the Disadvantage of Buying Off the Plan?

Buying off the plan has become a popular option for Australians looking to enter the property market, but it's important to weigh the potential risks and disadvantages associated with this type of purchase. When you buy off the plan, you are essentially purchasing a property that has yet to be built or completed, relying solely on plans and designs. While it can offer advantages, such as potential capital growth and customization options, there are several key considerations to keep in mind.

One of the main drawbacks of buying off the plan is the inherent uncertainty. Since you haven't seen the finished property, there is always a risk that it may not be built exactly as planned or that the quality may not meet your expectations. The inability to physically inspect the property prior to purchase means you can't identify any potential problems or defects. Additionally, you won't have the opportunity to gauge the property's overall feel or assess its location before committing to the purchase.

Another factor to consider is the timing involved in off the plan purchases. Construction can take a considerable amount of time, and during this period, the market conditions may change. This means that when the property is finally completed, its value may not align with the initial purchase price. It's crucial to carefully evaluate the potential market fluctuations and their impact on the property's future value.

Delays in the completion of the property can also pose challenges. Developers may encounter unforeseen obstacles or difficulties, resulting in project delays. These delays can be inconvenient and potentially costly, especially if you have made financial arrangements based on a specific completion timeline.

Legal risks are another consideration when buying off the plan. It's essential to thoroughly review and understand the terms and conditions outlined in the contract. This ensures that you are adequately protected in the event of any issues or disputes that may arise during the construction process.

At Ello Lending, we recognize the appeal of buying off the plan as a pathway into the property market. Our team of experienced mortgage brokers is dedicated to providing you with the guidance and support needed to make informed decisions. We can help you navigate the complexities of off the plan purchases, ensuring you understand the risks involved and offering assistance in securing the right home loan for your specific needs.

We understand that purchasing a property is a significant decision, and we are here to address any questions or concerns you may have. With our expertise and personalized service, we strive to ensure that you are well-informed and protected throughout the process. Contact us today to learn more about how we can assist you in securing the home loan you need for your off the plan purchase.

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Stamp duty rates for off the plan purchases vary across Australian states and territories. In Victoria, the rate is 4.5%, in Queensland, it is 4%, and in New South Wales, it is 3.5% for off the plan apartments. Stay informed about the latest rates as they may change over time. Our experienced mortgage brokers at Ello Lending can provide guidance and support in understanding stamp duty calculations. Contact us for assistance.

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Discover how to calculate stamp duty for an off the plan purchase in NSW and get expert guidance from Ello Lending, your trusted mortgage broker. We'll help you navigate the complexities of stamp duty and find the right home loan for your needs. Contact us today for personalized assistance and turn your off the plan property dreams into reality.

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Debt consolidation is not limited to credit cards; it encompasses various types of debt, including personal loans, medical bills, and student loans. It aims to simplify finances and potentially reduce interest rates and monthly payments. At Ello Lending, our mortgage brokers can provide personalized guidance on debt consolidation options to help individuals manage their debts effectively.

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