Blogs
What's New Trending
-
- March 17, 2023
- Off Plan Advantages
- (0)
- 02 mins
Is Buying Property Off Plan Right for You? Consider These Pros and Cons.
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.
