Oliver asks what does ‘off the plan’ mean?

Oliver has been researching online for days trying to figure out what type of property he should buy for his first home, subsequently becoming an investment in the future. Constantly coming across this word ‘off-the-plan’.

He decided to call one or two companies in the property industry who specialised in selling off the plan such as Off the Plan EXPRESS and ask them “what does off the plan mean to them?”.

He wrote down a list of key points on what each company said:

  • Signing a contract before the apartment, house or townhouse is built
  • Understanding images, floor plans, schedule of finishes and marketing materials
  • Having a solicitor / conveyancer review and explain the contract
  • In some developments you can have a physical display to walk through the project and experience what the finished property feels like
  • Paying a 10% deposit and in some instances a 5% deposit

From his days of research he jotted down notes which mirrored these key points above. Even though his dream was to buy a house in NSW, he still couldn’t get his head around signing a contract and paying a deposit before his future dream property was built.

Whilst strolling down the street to his daily shopping trip at the local Coles, he opened up a magazine at a street vendor, with amazing pictures of new developments around Australia. The allure of a scarce location and new construction really started to appeal to him.

Pushing his trolley through aisle three in Coles, Oliver had a revelation on what off the plan means to him. Not usually such as proficient baker, he stared at a yeast packet and the process of bread making totally clarified what off the plan means.

Excited by his new discovery, he rushed without thought with his trolley that veered to the right as it’s back left wheel needed some repairing. Only to push it straight into a young lady named Amber, causing her to fall to her knees, whilst narrowly missing serious injury. “I’m so sorry!” Oliver exclaimed in a loud shrill to young Amber.

“At least I didn’t hurt myself”, said Amber in a slightly stunned tone. Oliver helped her up to her feat and she asked him “why are you in such a hurry?”

“I just worked out what off-the-plan means!!”, he said. Amber was interested about this definition and kindly asked Oliver, “What off-the-plan is?”

Oliver started his explanation and was excited to unleash his bread making analogy about off the plan.

You have the first stage where you select which type of bread you want to make as you would the type of property you want such as apartments, houses or townhouses. In Oliver’s example he is making a basic bread recipe with wholemeal flour as he refers to it as his ‘NSW house’.

The second stage is buying the ingredients. In his analogy this exchange process covers holding deposit, contract review followed by the signing of the contract and payment of the balance of 10% deposit.

Thirdly is the construction process which is equivalent to the rising of the bread. A crucial step in achieving a quality finished result. He wanted Amber to picture herself in her kitchen at home. With a large glass bowl, a sachet of yeast, luke warm water and cup of flour in front of her. With all the ingredients mixed, risen and rested. You would bake as the builder / developer would excavate, reinforce, frame, pour, render, finish and decorate.

The final step is the settlement and occupation of the property. This step is represented by the resting of the bread once it has been baked and subsequent eating of the bread. A most exciting step in the process as your initial hard work is rewarded with delicious results.

Oliver’s enthusiasm for this new understanding about off the plan property excites Amber. He invites her for dinner at a local restaurant…to be continued