What is an off-plan property? What does it mean to buy an off-plan property? Buying an off-plan property simply means buying a home or property before its completion or even before the construction starts or building a home. Why would you buy an off-plan property? Well, the demand for property today exceeds the supply in the market. That explains why most people are going for off-plan properties. Before choosing an off-plan, there are things you need to know. Note that the contract may not always be straightforward but rest assured that we can help. Here are the advantages and disadvantages of buying an off-plan property.
- The property will be sold at its current market price though it may rise after the construction is over.
- You can find some off plan or new build homes on our website here or inquire for many others available
- The buyer can secure the asset for the low initial outlay, usually a 10% deposit and have time to save and organize the finances to purchase the property upon completion.
- The value of the property increases whenever the market experiences growth. Even before you settle.
- You can claim tax depreciation on fittings and fixtures whenever purchasing a property for investment.
- The buyer can be able to request for personalization of his choice for colors, finishes and layouts as it is being built.
- You not only get a brand-new property when you buy off plan but also the first choice of available units
- The date proposed for finishing the construction is only an estimate. This means you may experience delays.
- Bankruptcy. Who knows, the developer may become bankrupt before the completion of the building.
- There is the risk of paying too much for a property when the market goes down between the time of exchanging contracts and that of completing the construction.
- Your expectations as the buyer may not be met since you may only be allowed to see the property on completion. There is risk that what you fancied is not what you will get and the quality may not be as expected.
- The is risk of the interest rates rising before you possess the property and this may be a problem if you wanted to use the current rate of interest to fix the term of the loan.