Buying property off plan refers to purchasing a property that has not yet been built or completed. This practice has become increasingly popular in recent years, as it offers numerous advantages to potential buyers. However, there are also some downsides that buyers should be aware of before making a decision. Let’s take a closer look at the pros and cons of buying property off-plan:

Advantages of buying property off-plan

Flexible Payment Plans: One of the main benefits of buying off-plan is that you can often secure a property at a lower price than if you were to buy a completed property. Developers offer incentives to buyers who commit to buying early.

Customisation: As a buyer, you can have some input into the design and layout of your property. If you sit with the developer early, you can make changes to finishes or fixtures as long as they don’t affect the expected completion date of the property. However, any cost increases due to your changes are covered by you.

Higher potential for capital growth: When you buy off-plan, you buy at today’s prices, but the property may not be completed for several months or even years. In that time, the value of the property may increase, which means that when you decide to sell it, you could make a significant profit.

Disadvantages of buying property off-plan

Delays and Changes: When you buy off-plan, there is always a risk that the completion date may be delayed, or the developer may make changes to the design or layout of the property. This can be frustrating for buyers, especially if they have made plans based on a specific completion date.

Risk of Developer Default: There is always a risk that the developer may default on the project, which can leave buyers in a difficult position. If the developer goes bankrupt, buyers may struggle to get their money back, and they may also be left with an unfinished property.

Unpredictable market trends: When you buy off plan, you are essentially buying a property that does not yet exist. This can be a daunting prospect for some buyers, as they may not be able to visualise the property fully. The off-plan property is sold to you on an ROI basis, if the market doesn’t do well due to political, social or economic reasons then you will not achieve the ROI you were expecting.

Conclusion

Ultimately, buyers should carefully weigh the pros and cons before deciding on whether to buy off-plan. It’s also important to work with a reputable developer and seek professional advice before committing to any purchase.

We understand that purchasing off-plan properties can be a daunting process for many. That’s why we are here to guide you every step of the way and help you make an informed decision about your investments.

What are off-plan properties?

Off-plan properties refer to those that are yet to be constructed or are in the early stages of construction. They are marketed and sold to buyers using architectural plans, image renders and pre-construction layouts. Buying property off plan is technically buying into a promise.

Why Off-Plan?

The price is still at its introductory stage and has the potential to appreciate as the project progresses and generates more demand. With the growing population and increased demand for housing, buying off-plan properties can be a smart real estate investment opportunity for you.

Our approach

We believe information is crucial to buyers looking to make informed decisions about purchasing their property off-plan. We have a team of experts to help you understand the process and also provide detailed information about all our off-plan projects.

Why you should work with a trusted and experienced real estate company

With the right information and support, off-plan properties can be a smart real estate investment that provides you with the opportunity to get a better deal for your property. Browse through our website for ongoing off-plan projects, such as The Sandcastle in Diani or get in touch with us at +254 732 000 094 for more details. Our team is always here to help.