BBuying property off-plan means that you buy the property before the developer even starts or completes it. Technically what you will be investing in at that stage will be the promise of the property or even the developer’s dreams. To most people, buying off-plan can really sound risky because, you are not buying a tangible product; you are buying a projection, a projection that may not materialize. However, off-plan buying is not a new concept at all. It is something that is standard practice in real estate.
Off-plan buying is not as straightforward as it may sound. You need to do your research well, get to know the developer, where the building will be, insist on a site visit, ask to see the plans and most of all, get a conveyance lawyer who will be able to explain the documents to you before you put your name on the dotted line.
So would you buy off-plan? We will look at the advantages of off-plan buying and hopefully help you to make up your mind on whether it is an option you may want to explore, as you make your foray into the real estate business.
Advantages of buying off-plan.
One of the biggest advantages of buying off-plan is that you may actually end up paying less than what you would if you were to buy into the project once completed. In an effort to raise funds to complete projects, developers may offer the off-plan option. To entice buyers, they will give huge discounts to those who buy before the project is actually off the ground. This is a great benefit for someone who would be looking at buying the property for speculative purposes because the returns will be higher.
Off-plan buying also gives you some kind of control over the final look of the house. To further entice buyers, most developers will give you the option of being able to personalize the fittings and finish especially the interior design aspects. The developer can, however, insist on having control of how the exterior looks for a more uniform look of the finished project. This is especially true for projects like in s gated communities where the houses need to have a uniform look and feel. You can also take the property before the actual completion and flip it to customize it for a particular market.
If you are taking the property for the sake of renting or speculation, you have the chance to research the market better while the building is in progress. This way, once the project is completed, you will have done your due diligence and made the right decisions regarding the use of the property.
If you are ready to invest in real estate, buying off-plan is a good idea. However, do not make any decisions without proper research. Invest a great deal of time in researching the developer so you have a proper understanding thus saving you from making costly mistakes.