Buying off-plan properties can be risky but yet extremely profitable. As far as you take effective steps into making sure your off-plan investment strategy is a secure one, you are bound to reap the benefits.
Off-plan properties are properties that are still in construction or planning phases, and so haven’t been completed yet. An off-plan purchase or buying off-plan properties simply means committing yourself to buy a property before it is completely built. It could be before the building starts and it could also be when the property is already being built, as far as it is not completed it is still an off-plan purchase.
Pros of Buying An Off-Plan Property
It is cheaper than buying an already built property: This is the most attractive aspect of buying this kind of property. You get to save up extra money that you would have spent if you purchase at the final sales price.
You can Pay Instalmentally: A major flex when it comes to buying off-plan properties is that you do not have to pay at once. You can purchase a deposit and set up a payment schedule that can help you pay the value of the house in instalments.
You can personalize the property: If you are a kind of person that likes to personalize things especially when it comes to your home this is a great choice for you. Since you would see the raw look of the house and follow the process of construction you can always change what you do not like the distribution and materials of your home. Basically, you can easily have an input into the interior decor, fixtures and fittings.
Easier buying process: Unlike completed properties, the buying process of off-plan properties is usually simpler. The developer can provide a solicitor, all the usual legal searches have already been completed and when you view the property/site, you can exchange there and then.
New Build Warranty: Unlike purchasing an existing property which you would have to worry about maintenance or checking for defects, off-plan properties come new. A new build warranty would be given when you purchase it and this could be a 10-year insurance policy against any construction defects.
Cons of Buying Off-plan properties
Buying off-plan properties has a number of risks attached to it which is why it is highly advisable that you get the right information from right sources before purchasing.
Some properties never get completed: After paying and everything, some off-plan properties do not reach the completion stage, some are never even built at all despite the promises.
It is in your best interest that when you decide to buy off-plan property, make sure you specifically ask for a signed agreement about the date of delivery in the contract. However, if you find yourself in a situation where the property was not completed or delivered on time as agreed, you can always seek legal intervention
Delay: There may be circumstances which arise causing the developer not to complete construction within their initial estimated timeframe thus meaning that completion could be delayed. Contracts normally include a long stop date to ensure that if you decide you cannot wait beyond a certain time you are able to withdraw without risking losing your deposit and reservation fee.
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