property
Off-the-plan vs established: first home buyer comparison
Mentone first home buyers weigh new apartment registrations against older houses as the July grant window opens.
How we reported this
First home buyers in Mentone registered 312 off-the-plan contracts in the first week of July, outpacing the 189 established-home sales recorded in the same period last year.
The choice matters now because the Mentone First Buyer Incentive renewed on 1 July with a fixed $15,000 top-up available only until 30 September. Interest rates have stayed at 4.25 percent since February, yet construction costs for new builds rose 7 percent in the past twelve months, narrowing the price gap that once favoured off-the-plan purchases.
Walk through the Mentone Station precinct on any weekday morning and agents from Bayview Realty point out two-storey townhouses on Beach Road that qualify for the grant. A few blocks inland, the former railway land at the corner of Park Avenue and Station Street now hosts three mid-rise projects accepting deposits for 2028 completion. The Mentone Housing Office on Main Street distributes the grant forms and keeps a list of approved lenders.
Off-the-plan route
Off-the-plan units in the Station Street towers start at $312,000 with a 5 percent deposit due on signing. Buyers lock in today’s price but face body-corporate fees of $4,800 a year once the building opens. Stamp duty concessions under the grant cut the state levy by half on properties under $400,000, yet settlement delays of up to 24 months leave some purchasers paying rent longer than expected.
Established homes
Established houses on Park Avenue changed hands at a median $465,000 in June, according to Mentone Property Watch data released 3 July. These properties allow immediate occupancy and let buyers inspect wiring and plumbing before purchase. The same grant applies, though the older stock often requires an extra $20,000 to $30,000 in immediate repairs that off-the-plan units avoid.
Buyers who want to act before the September deadline should book a slot at the Mentone Home Centre on Beach Road by 15 August. Staff there run free comparison sessions that match income details to both off-the-plan floorplans and established listings still on the market this month.
This article is general information only and is not personal financial or investment advice. Consider your own circumstances and seek licensed professional advice before making financial decisions.