What is Off The Plan Property?

This is a new term that I learn since landed here in Australia.

Off the plan property basically means property that has not yet been constructed. So it also usually means, the property is directly sold from the developer. However this is not all the case. Sub-sales from a buyer could also can be off the plan property as long as the property has not been constructed. This is important because I misunderstood that buying off the plan property "MUST" be directly from developer.

A lot investors here buy off the plan properties and resell them again later. They are very smart, and they will know when is the best timing for sub-sales. For example, they grab all the 1-bedroom apartment in the market very fast and resell it when there is no more sale directly from developer. So buyer who really wants 1-bedroom apartment will have not choice but to buy from them.

Nevertheless if I knew about this, I would have just wait for the sub-sales option which gives me more options to choose. We wanted a 1-bedroom apartment but ended up with buying 2-bedroom apartment because all 1-bedroom apartment was sold out at that time and just left some units that we don't like. Please note that buying from sub-sales also means you're buying property that is more expensive than initial launch from developer. I guess no choice if you miss the boat.

Speaking of this, I realize I have been always buying off the plan property since my first house in Malaysia. Maybe I should talk about this why off the plan property is good for me. Anyway, I hope this sharing is useful and have a nice weekend!