Why Buy Off Plan Property
Buying an off-plan property simply entails buying a house based on the technical, structural and architectural design before its actually built. To some people, this is a no no because the perceived risk associated to such an investment type while some other investor see’s it as an opportunity to key in to the future at a much more cheaper rate.
Purchasing an Off-Plan property comes with several advantages, some of which we will be looking at today.
Advantages of buying an Off-Plan property
Secure a property below the market price
A major advantage of buying off-plan properties is the ability to secure the purchase at below market value. Most developers sometime want to sell some units of his/her property at the off plan stage in other to have enough capital for the project. After which they sell the remaining units at premium once the project is completed. Some developers also offer additional discounts for investors purchasing multiple properties at any one time as an added incentive.
You can acquire the property by making a part payment in most cases between 20% to 30% depending on the developer or your negotiating abilities and spread the balance across the project period sometime this could be between 12 to 18 months depending on the size of the project.
Capital growth on property
The value of your investment appreciates right from the time you invest in the off-plan property . If for instance you invested in the property today and the project delivery time is 18 months from project inception, the property would have gained in value at the project delivery date and will continue to appreciate as the years go by everything being equal. This can add tremendous value to a property, especially if it has already been purchased at a discounted price from the outset.
Investing in off-plan property enable you to plan your finances and make the required instalments without much pressure. Especially if the instalment payment is structured in such a way that is in line with the your cashflow. These structured payments enables investors to purchase property without a significantly large amount as would if its not an off plan property
Off plan properties gives the investor the opportunity to request for some level of customization from the developer while the project is still within the construction stage. This is usually not possible once a project is completed. You can have the option of personalizing some aspects such as the kitchen, walls, or flooring. To do this you will have to meet with the developer and the project architect to look at the possibilities of putting your required changes in to consideration.
Possibility of selling at a profit as a secondary sale
Once the project is completed the market value changes immediately based on the prevailing market situation and its usually upwards. At this point a investor that keyed in during the construction/off plan stage can decide to sell at a profit. Same can be put up for rent while the investor benefits from capital gain on the property.
For more information about investing in off-plan property don’t hesitate to get in touch with us. You can also view our property listing to take advantage of some of our available great offers via Bricks & Clay Property Listing.