BUYING OFF PLAN
What does off-plan mean?
This simply means that you enter a contract to purchase a unit(s) in a property development that is planned or is currently under construction. Most property developers offer some very attractive payment terms allowing you to pay a small deposit and pay monthly installments until the project is complete. Then you would be required to pay off the remaining balance upon key handover or title transfer. Buying off-plan property has good and bad points. You will have to wait some time before you can finally move in to the property, however once the property is complete owners commonly enjoy an instant financial capital increase of 15-20%. Generally you are buying the property to be delivered in the future, but secured at today’s current market price; which can result in healthy capital gains in a rising market.
This scheme is popular with professional property investors as they buy the best units early and then sell the contracts on for a quick profit.
If buying a second hand contract you pay the investor their payments back and then simply continue the remaining payments to the developer. There is usually a small contract transfer fee and the changeover can often be completed the same day.
You may be an early buyer looking to invest in multiple units for re-sale at profit or keeping as rental investments. You might be planning your retirement and buying a retirement home now by securing the ideal unit in your favourite project and spreading your payments affordably before you get here.
New homes generally offer the latest designs and technology, with lower maintenance costs.
There are many reasons how to benefit from buying off-plan property.
Is it better to deal with the developer directly? At first thought yes. In reality, NO.
Don’t I save money if I buy direct from the developer? You may think so, but the answer is NO.