The Easiest Way to Buy Off-the-Plan in Bulimba

Buying off-the-plan gives you more time to save.

Unlike an established home where settlement happens within weeks, an off-the-plan purchase lets you lock in today's price while the property is still being built. Settlement might be 12 to 24 months away, depending on construction timelines. That extended period gives you time to continue saving, arrange your first home buyer deposit, and apply for home loan pre-approval without the immediate pressure of a six-week settlement clock.

For buyers in Bulimba, this approach suits the suburb's changing character. Bulimba has long been a tightly held established home market where freestanding houses command high prices and sell quickly. The off-the-plan apartment and townhouse developments appearing along Oxford Street and closer to the riverfront offer an entry point into the suburb that many first home buyers would otherwise struggle to reach.

How the Australian Government 5% Deposit Scheme Works for Off-the-Plan Buyers

You can purchase with just a 5% deposit and no lenders mortgage insurance. Housing Australia guarantees the difference between your deposit and 20% of the property value, removing the need for LMI. The scheme has no income caps and no annual place limits.

Applications are made through a participating lender, not directly through Housing Australia. The property price cap for Brisbane and Queensland regional centres is $1,000,000. Both the purchase price and the lender's assessed value must sit at or below that cap. The scheme covers new and established homes, and it works with off-the-plan contracts as long as the property meets the price threshold and you intend to live there as your principal place of residence.

Consider a buyer purchasing a two-bedroom off-the-plan apartment in Bulimba for $740,000. With a 5% deposit, they contribute $37,000. The lender advances 95% of the purchase price, and Housing Australia's guarantee covers the gap between 5% and 20%. The buyer avoids an LMI premium that would otherwise add several thousand dollars to the upfront cost. At settlement, the buyer needs the deposit plus conveyancing, building and pest inspection costs where applicable, and adjustment fees. Because it's an off-the-plan purchase, some of the initial holding deposit paid at contract exchange is credited toward the final deposit at settlement.

Queensland Stamp Duty Concessions on New Homes and How They Apply to Off-the-Plan Contracts

Queensland offers full transfer duty relief on new homes with no price cap for contracts signed on or after 1 May 2025. Duty is reduced to nil on the residential land component. This concession applies to first home buyers purchasing off-the-plan apartments and townhouses, provided at least one applicant is an Australian citizen, permanent resident, or specified foreign retiree for agreements entered into on or after 1 August 2026.

An off-the-plan townhouse in Bulimba priced at $820,000 would ordinarily attract transfer duty calculated on the full value. Under the first home new home concession, that duty liability is reduced to nil, saving the buyer approximately $28,000 in upfront costs. That saving can be redirected toward the deposit or held as a buffer for settlement costs and moving expenses. The concession does not extend to established homes, which remain subject to the first home concession for existing properties. That concession provides a reduced rate, not a full exemption, and phases out entirely at $800,000.

The $30,000 First Home Owner Grant and Why It Matters for Off-the-Plan Buyers

Queensland provides a $30,000 grant for eligible first home buyers purchasing or building a new home valued under $750,000. The grant was extended for four years from 1 July 2026 as part of the state budget. It does not apply to established homes.

For an off-the-plan apartment priced at $680,000, the grant provides a direct contribution toward the deposit or settlement costs. If the buyer is using the 5% Deposit Scheme and contributing a $34,000 deposit, the $30,000 grant covers the majority of that amount. The buyer needs to find only $4,000 in genuine savings, plus settlement and conveyancing costs. The grant is paid at settlement, not at contract exchange, so buyers need to fund the initial contract deposit from their own resources or with gifted funds where the lender permits.

The $750,000 value cap excludes many off-the-plan townhouses and larger apartments in Bulimba, where prices have been trending above that threshold. Two-bedroom apartments in the suburb's newer developments frequently settle in the $700,000 to $850,000 range based on size and aspect. Buyers purchasing in that upper band can still access the full stamp duty concession but miss out on the grant.

Contract Deposits and Sunset Clauses in Off-the-Plan Purchases

Most off-the-plan contracts require a deposit of 10% of the purchase price, paid in stages. A portion is due at exchange, with the balance due within a set period, often 30 to 90 days. That deposit is held in trust until settlement. If you're using the 5% Deposit Scheme, the scheme covers the deposit at settlement, not the contract deposit paid during construction. You still need to fund the contract deposit yourself or arrange a deposit bond.

A deposit bond is a guarantee issued by an insurer that promises the developer will receive the deposit if you fail to settle. It lets you satisfy the contract deposit requirement without paying cash upfront. Fees for a deposit bond vary depending on the term and amount but are typically lower than the interest cost of borrowing the deposit through other means. Not all developers accept deposit bonds, so confirm this before relying on one.

Sunset clauses set a final date by which the developer must complete construction. If the developer fails to meet that date, either party can rescind the contract and the deposit is refunded. Developers sometimes seek to extend the sunset clause if construction is delayed. Buyers are not obliged to agree. If the market has moved substantially since you signed the contract, the sunset clause gives you an exit without penalty.

What Happens Between Contract and Settlement

You continue saving. You arrange pre-approval with a participating lender if you're using the 5% Deposit Scheme. You confirm the loan structure, whether fixed, variable, or split, and whether features like an offset account or redraw are available through that lender's scheme product. Not all participating lenders offer the same loan features under the scheme, so ask directly.

Pre-approval is not a final loan approval. The lender reassesses your application closer to settlement using your current income, liabilities, and the completed property valuation. If your circumstances change during construction, such as a job change, additional debt, or reduced income, the lender may withdraw or vary the approval. Keep your finances stable during the construction period.

You also monitor construction progress. Developers provide updates, and you can visit the site if access is permitted. Once practical completion is certified, the developer notifies you of the settlement date. At that point, the lender orders a final valuation to confirm the completed property meets the contract specifications and the price cap for the scheme. If the valuation comes in below the contract price, the lender may reduce the loan amount, and you will need to cover the shortfall.

Loan Features and Structures Under the 5% Deposit Scheme

Participating lenders offer different loan features depending on their scheme product. Some lenders allow offset accounts, which reduce the interest charged by offsetting your savings balance against the loan principal. Other lenders offer redraw facilities, which let you access extra repayments you've made above the minimum. Some lenders restrict features or charge higher rates for scheme loans compared to their standard variable products.

Fixed rates, variable rates, and split loan structures may all be available, but terms differ by lender. A split loan divides your borrowing between a fixed portion and a variable portion, giving you rate certainty on part of the loan while retaining flexibility on the rest. If you fix part of your loan and rates fall, the fixed portion remains at the higher rate until the fixed term expires. If rates rise, the fixed portion protects you from increases during that term.

In our experience, buyers using the scheme often overlook the cost of holding an offset account versus the benefit it provides. If your lender charges a package fee or a higher interest rate to include an offset, and you're unlikely to maintain a meaningful balance in the account, the cost outweighs the saving. Run the numbers with your broker before adding features you may not use.

Call one of our team or book an appointment at a time that works for you. We'll walk through the participating lender panel, confirm which loan structures and features are available for your off-the-plan purchase, and arrange pre-approval that aligns with your expected settlement timeline.

Frequently Asked Questions