Property investors and home buyers in Melbourne always consider buying an off the plan apartment as the stamp duty savings in Victoria can amount to tens of thousands of dollars in savings. The benefits of buying an off the plan Melbourne apartments also include such items as having the opportunity to save for additional deposit during the construction phase, selecting an apartment early on in the sales process, sometimes having the option to select a colour scheme before the developer has started construction and being in a position to lock in a price early and reap the rewards from any capital growth during the construction time period.

There are some areas of Melbourne where off the plan apartments get sold quickly. These areas in Melbourne generally are inner city locations which can include South Yarra, South Bank, Richmond, St Kilda, Prahran, Port Melbourne, Abbotsford and more.

It is important when buying an off the plan apartment in Melbourne and in other locations around Australia that as a home buyer or property investor, you understand the risks involved along with the process of buying an off the plan apartment. Below is a quick overview of the process of buying an off the plan apartment in Melbourne:

1. Submit a Sales Advice and a holding deposit to take your selected apartment off the market

2. Review contracts with your solicitor or Conveyancer

3. Ensure 10% is available for a deposit. This can be Cash, Bank Guarantee or Deposit Bond depending on the Developers Finance arrangements

4. Sign contracts and exchange with deposit

5. Organise finance 3 months prior to completion

6. Conduct a pre-settlement inspection

7. Settle on your new apartment

As you can see from the above, buying an off the plan apartment in Melbourne is fairly simple and can normally be done in 7 to 14 days. Ensuring you have a good team around you including a good mortgage broker for your home loan along with a conveyancer that is familiar with off the plan contracts which are generally larger and more detailed than that of an established property.

Most importantly know that you can afford to purchase the desired property and feel comfortable moving ahead with the purchase of the off the plan apartment as it could be 2 or 3 years of waiting before the completion of the Melbourne apartment and you want to make sure that this is a period of your life which you enjoy and not stressed out wondering how you may be able to pay for the apartment down the track.

In Summary, the purchase of an off the plan apartment in Melbourne can be a good idea if you are educated in your decision to purchase and the location where the apartment is being constructed. If you are investing in an apartment that is off the plan in Melbourne, make sure you buy based on the numbers and not on your emotions. A location which you personally may not find desirable today may change in years to come and deliver the best capital growth, so rely on your team around you to help making the buying process that little less stressful and a whole lot easier.

To see a selection of over 25 of the plan apartments in Melbourne, visit Find Investment Property.