Why buy off plan? (traduction
en français en cours)
Buying off plan simply means purchasing a property
from architects' drawings, as opposed to a finished building.
Typically these drawings are presented in the form of a sales
brochure from the developer. Planning permission will have
been granted, but the building work will not have been completed.
This is usually the most cost effective way of purchasing
a property. To a developer, time is money. Developers want
to sell their product quickly and will therefore price their
product accordingly. The quicker they can finance and build
their development, the quicker they can take their profit
and start the process all over again. This is one of the main
reasons property investors buy off plan. Below are some other
reasons why you should seriously consider off plan property
as an investment:
* You more often than not, buy under market
value regardless of the market.
* You do not have to tie up all your money in one go, allowing
you to free up money for other investments.
* It takes a lot less time and effort on your part.
* Most of your research is carried out for you.
* Developers purchase their building materials in bulk, therefore
passing the savings on to you.
* You can resell before, during or after construction.
* The investor avoids paying any resale premiums.
* Past experiences suggest your property will usually appreciate
in value during the construction phase.
* If your property is part of a large master planned development
there will usually be a substantial increase in property values
upon completion of the whole development, especially if you
get in early. e.g. Phase One.
* Low maintenance costs and a builder's construction warranty,
saving you considerable money over the long term.
* Portfolio diversification.
* Easier and cheaper to customise the property during the
* Greater choice of property available.
* Some payment structures allow you to pay affordable installments,
thus avoiding the need to arrange a mortgage.