Off the plan and turnkey

Buying off the plan means entering into an agreement to purchase a property before it is built, based on plans and specifications. Turnkey is a form of off-the-plan purchase where the property is delivered complete and ready to occupy, with a single payment at settlement.

The main structures

• Turnkey — deposit now (commonly 10%), balance at completion. No progress payments. The builder carries the construction funding.
• Progress payment builds — you pay in stages as construction proceeds, which means you carry interest costs during the build.
• House and land packages — may be structured either way; the land and build may be separate contracts.

Why investors use them

New builds attract several advantages: exemption from LVR speed limits, and new build status for tax purposes (see that entry). The property is new, low-maintenance and Healthy Homes compliant from day one.

The risks

• Valuation at completion may be below the contract price, particularly if the market falls during the build. You are contractually committed at the agreed price, but your lender values at settlement. A shortfall must be covered in cash.
• Finance approval expires. Approval obtained at signing may not be valid 18 months later, and your circumstances or lending criteria may have changed.
• Builder insolvency is a real risk. Check what protections exist — bank guarantees, deposit held in trust, completion bonds.
• Delays are common and can be substantial.
• Specification variation — what is delivered may differ from what was marketed. Read the specification schedule, not the brochure.

Common misunderstanding

A sunset clause protects the developer more than you — see entry 76.

Marketing renders are not the specification. Landscaping, appliances, fencing, driveways and window coverings are frequently excluded.

Related terms

Last reviewed: 1 August 2026 · ---

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