Australian Property | Buying Process for Off-the-Plan Property in Australia (Apartments and Townhouses) (2023 Update)

1. Reserve a property
Once buyers have selected a property they are happy with, they pay a holding deposit (usually A$1,000 - A$5,000), which allows the agent to request that the developer reserve the property. If the buyer changes their mind before the contract is signed, this holding deposit is refunded in full; if the contract is signed, the holding deposit forms part of the deposit. For overseas buyers, Aobo Realty will assess your financial capacity in advance to determine the type and price range of property you can purchase.
 
2. Sign the contract
The developer provides the purchase contract to the buyer or the buyer's solicitor. The buyer signs after consulting their own solicitor and fully understanding the contract. The developer also signs the purchase contract and provides the buyer with a copy signed by both parties, at which point the purchase contract takes effect.
 
3. Apply for FIRB approval

Overseas buyers submit a purchase application to Australia's Foreign Investment Review Board (FIRB). This step applies only to overseas buyers. From July 2023, FIRB applications use a new system, and this process is generally completed with the assistance of the buyer's solicitor. For details, please see Life in Australia | Update on the latest Foreign Investment Review Board (FIRB) fees for the 2023-2024 financial year

4. Pay 10% -20% deposit
The buyer must pay 10% or 20% of the purchase price as a deposit within the timeframe stipulated in the contract (usually 7-14 calendar days). This deposit must be paid into the trust account of the developer's solicitor. Any interest earned while held in this trust account generally belongs to the buyer and is settled to the buyer at settlement. The developer cannot withdraw the deposit before settlement, which fully protects the buyer's interests.
 
5. Construction
During the construction period, the buyer does not need to pay any fees.
 
6. Home loan preparation
Three months before handover, Aobo Realty assists clients in preparing and submitting their loan application.
 
7. Final inspection
Once the property is completed, the developer invites the buyer or the buyer's representative to inspect it. Any issues found during the inspection are recorded, and the developer will then arrange for repairs. If the buyer requires a professional building inspector to issue a formal inspection report, Aobo Realty can assist with arranging this. Should any issues arise within three months of settlement being completed, the developer will also be responsible for prompt repairs. At the same time, the developer registers the title for the project.
 
8. Warranty and maintenance
The quarterly Body Corporate Fee already includes building insurance, so no separate payment is required. The indoor fixtures covered here include the dishwasher, oven, rangehood and cooktop, all of which come with a three-year manufacturer's warranty and two-year government statutory insurance, giving a total warranty period of five years.
 
9. Settlement
On the day of settlement, the buyer pays the balance of the purchase price (excluding the loan) to the developer. The buyer's solicitor liaises with the developer's solicitor to complete the final settlement formalities. The buyer can then move into their new home. For investors who will not be living in the property themselves, Aobo Realty can arrange property management, including leasing and maintenance.