The Pros and Cons of Buying Off-The-Plan Property
Off-the-plan property has been a buzz word for quite a while with many analysts arguing both for and against the strategy. Many recommend it while others feel that the strategy never works out. There are pros and cons to any kind of investment and so is the case with off the plan property. Buying off the plan can be a really good strategy in some circumstances while in other situations you may better choosing something else.
One of the biggest benefits of buying off the plan property is that you get to own a newly built property, and it might be at a very competitive price. Developers sell property off the plan to meet the pre sales requirement for their loan.
Developers at this stage usually offer very good discounts to meet the pre-sale requirements of the lending entity. You can also enjoy the benefit of a long settlement period and allowing you time to arrange your finances or sell your property. Off-the-plan property also gives you the freedom of customization. Since the property is still under construction, the developer will often allow you to make certain changes to the plan to suit your taste.
Buying any property by simply looking at a plan on a piece of paper or a model involves a significant amount of risk. You may not be able to fully comprehend the plan and as a result, the outcome might not meet your expectations. There is also a financial premium often charged for new property as there is a wider market for new properties compared to used or old properties.
Other risks are that there may be delays in the project or the developer may go bankrupt amidst the project or warranty period which again can be a very painful situation.
But the biggest reason not to buy off-the-plan is the opportunity loss to build financial success – why not build or develop yourself, and access the builders profit? We can assist you with your development.