Why would a buyer buy a lot in an estate before the registration date of the lot?
A buyer would choose to buy a lot in an estate before the registration date—often referred to as an off-the-plan land purchase—for several strategic and financial reasons:
| Reason | Explanation |
|---|---|
| 1. Lower price (early bird discounts) | Lots are often cheaper in early stages or pre-registration sales to attract buyers and generate momentum. |
| 2. Capital growth | If the market rises between contract signing and registration (often 6–12+ months), the buyer benefits from price appreciation before settlement. |
| 3. Time to save | Buyers lock in today’s price but get extra time (until registration) to save for the deposit or loan requirements. |
| 4. Choice of lots | Early buyers get better selection—such as corner lots, parkside locations, or larger blocks. |
| 5. Building timeline planning | Buyers can secure a block in a future stage and begin working with builders on design and approvals while waiting for registration. |
| 6. First home buyer schemes | Some government incentives allow first home buyers to purchase early and qualify for grants or stamp duty concessions. |
| 7. Long-term investment | Investors may buy in unregistered stages for land banking or to take advantage of growth in up-and-coming areas. |
Risks and Considerations:
| Risk | Description |
|---|---|
| Delays | Registration may be delayed due to weather, council approvals, or construction setbacks. |
| Valuation risk | The lot may be valued lower than the contract price at the time of settlement, impacting finance. |
| Market changes | Interest rates, buyer demand, or lending conditions may shift before settlement. |
| Non-refundable deposit | Backing out may result in forfeiting the deposit if the buyer defaults. |