Off-plan property is a great option for both investors as well as end users who are looking for a brand new home at a future date. Lets have a look at the top 3 reasons to buy off plan property.
Capital Appreciation
The main advantage of buying off-plan is capital appreciation which in this case is the difference between the purchase price and market price at time of completion.
By buying before a project is fully completed, off plan buyers benefit from the increased demand that comes along as construction of the actual project and in certain cases the area nears completion. Quite often buyers can also cash out early and sell their property before developments full completion.
Buy Brand New
Buying off plan gives buyers the chance to buy brand new, never lived in properties. Along with this it also allows buyers a choice of units to choose from meaning they can choose certain attributes such as views, size and layout. This is a luxury you simply don’t get when purchasing on the secondary property market.
Flexible Payments Plans
Off-plan property is paid for in various instalments, usually referred to as the ‘Payment Plan’. The typical payment plan requires a down payment of only 10% with the remaining payments to be paid in line with construction. The types of payment plans available do vary with some developers even offering post payment plans where the final payments are not due until one or two years after project completion. Flexible payment plans such as this make buying property a possibility for buyers who would have not otherwise been in a position to buy.
These are just three of the many benefits to buying property off plan however it isn’t to say that doing so should not be done with due care and preparation. Just like with any investment big or small its important to do the right amount of research and due diligence before making a commitment. In the case of buying off plan it’s important to look into the developer you are buying from and even more importantly their track record.
Do they have a history of delivering quality projects and delivering these on time? What is their reputation in the market? Answers to these questions will make deciding which developer to buy from a great deal easier and will also ensure you get exactly what you were promised.
