Off-The-Plan Apartment

Buying an apartment off-the-plan is a great way to get into your own home, sooner.

Move into your new home from as little as $5,000*.

Buying off-the-plan means you are purchasing a property that hasn’t been built yet. Because of government stamp duty concessions, grants and HomeStart’s lower upfront costs, buying an apartment off-the-plan is a great way to get into your own home, sooner.

*Based on a purchase price of $329,000, and assumes borrower is eligible for HomeStart’s Graduate Loan and the First Home Owner Grant

HomeStart-line.pngHere's why:


Lower upfront costs

Recent changes to government stamp duty concessions mean that you can now buy an off-the-plan apartment within any development in the Adelaide Metropolitan area, and still be eligible for reductions in stamp duty costs. If you’re a first home buyer, you could also be eligible for the First Home Owner Grant of $15,000. And if you’re eligible for a HomeStart loan you will only need a deposit from 3% of the value of the apartment.

With off-the-plan purchases, a developer usually requires a 10% deposit upfront, however HomeStart has identified a number of apartment developments where the developer is willing to accept as little as $5,000 for the deposit. For example, to buy an off-the-plan apartment for $329,000 using HomeStart’s Graduate Loan, you may only need $5,000 upfront:

3% deposit* $9,870
Fees and charges (including stamp duty) $21,141
First Home Owner Grant** -$15,000
Stamp duty (and transfer) concession - $11,011
Total upfront costs $5,000

Boost your borrowing power

If you meet HomeStart’s eligibility requirements, you may qualify for a subsidised or fee assisted loan that can boost the amount you can borrow, so you can get the apartment you want, sooner. Find out more at  


One of the biggest charges most lenders apply to low deposit loans is Lenders’ Mortgage Insurance (LMI), which you pay to protect your lender in case you default on your loan. Instead, HomeStart has a Loan Provision Charge (LPC), which costs a lot less for most customers. This charge is incorporated in our Fees and Charges.  
For example, the table below shows LMI or LPC costs for a $400,000 property (existing or off-the-plan), with a $380,000 loan amount (5% deposit).


HomeStart-line-(2).pngWhile there are many benefits to buying off-the-plan, there are some things you should think about before signing a contract:


Time taken until apartment is ready

Usually, the developer is required to have a percentage of their apartments pre-sold before they start building (up to 70%).  The time it takes to sell this pre-sale target will dictate when construction commences, and when you’ll know your apartment is ready to move in to.  Make enquiries about the level of pre-sales, and when the construction is likely to commence. Read the detail of the contract to fully understand your rights in the event that commencement is unduly delayed.

Unconditional contract

The contract you enter into when you buy your apartment is usually unconditional, which means you are committing to the purchase.  Read your contract carefully before you sign to better understand your rights and responsibilities in the event you are unable to complete the purchase.

Sight unseen

When you buy an apartment off-the-plan, you will not be able to see your actual apartment before you sign the contract. Sometimes, the layout or size of the initial specifications may also be altered.  Read your contract carefully to understand your rights about any variations that can be made.

Lender approval

Because of the time between the time you sign the contract and when building is complete, no lender is able to give you ‘full approval’. If there are circumstances that impact the amount you can borrow, due to changed circumstances or changes in market conditions, you may not be able to complete the purchase.  This may lead to the loss of your deposit and potentially being liable for any loss or damages caused to the developer for not completing the sale.


Want to find out more?

To check out some of the apartments you may be able to buy from as little as $5000, explore the developments below. 
  To see if you’re eligible for a HomeStart loan to get into your own apartment,
call us on 1300 636 878.

Please note this information does not constitute financial advice. It is the purchaser’s responsibility to seek advice as to whether buying an off-the-plan apartment suits their financial situation and needs.


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