Off the Plan Purchase with Borrowed Money

With borrowed money, you can purchase a property off the plan but there may be situations where this is not possible as outlined in SMSFR 2-012/1.

You can purchase off the plan in the following situations:

• Where the contract is to purchase the land with the house on it.  This means that at settlement for the acquisition of the property the building is completed.
• Where after settlement excess funds had been borrowed to be used to <repair/restore> the property for income producing purposes.

You cannot purchase off the plan in the following situations with borrowed money:

• Where the contract is to purchase land only and after settlement a house is built on it
• Where after settlement excess funds had been borrowed to be used to <improve> the property for income producing purposes

There is a solution to purchase a house and land package where the purchase contract & settlement occurs after the house is constructed, this requires the builder to find the construction, contact us to find out more.