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Buying off - Plan

Nowadays everyone is looking for a way to quickly earn some money, investments abroad, are today big business, especially new constructions where the benefit of your initial investment is very high, higher than buying an existing  property. For those who are planning to buy an apartment, villa or house for own use, or to rent, so that it creates an income, buying off-plan is still the best way.


Buying off-plan means reserving a property as much as two years before building is due to be completed and often before a single brick has been laid. The advantage to you, the investor, is that you secure the property at a discounted price, well below the market rate-and as the property is built, its value increases.


The developer needs to sell a number of units before building can commence. In fact, the bank will have insured the developer on the basis that a percentage of the development is sold before construction can begin. Discounts are therefore offered because early sales are essential if the developer wants his development to reach completion.


Only a percentage of the price needs to be invested in order to secure your off-plan property. This is usually 30-40 percent of the total price and is paid in instalments. The balance becomes due upon completion of the property when ownership is signed over to you.


If you sell your property during construction you can expect a return on your investment that reflects an increase in the overall current market value of the property while having only ever tied up 30-40 percent of the original discounted price. This is the usual route taken by investors to achieve maximum gains on investment and free up capital to buy their next off-plan property.


As with all investments, timing is important and identifying the best units in the earliest phases of a high quality development in a good location is the key to making a sound investment. Buying in the early days leaves ample time for optimum price increases as interests from other investors and homebuyers rises with the brickwork.


Upon completion of the show home, your property will become saleable to all those buyers who will only buy a tangible product. It only takes one of the potential two million families relocating here, for your investment to become profit in your hand.

 
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