Save Buying property off-plan is one of the most cost-effective ways of investing in real estate. Here’s all you need to know
They say timing is everything, and when it comes to investing in new property developments, the early diggers gets the gold 95% of High Net-Worth Individuals Have A Hand In The Real Estate Pie
Buying off-plan means purchasing a house or apartment directly from a property developer before the development is built.
“The biggest advantage of buying off-plan is the fact that there are no transfer duties as property tax is incorporated into the sale price in the form of VAT, so the price you are given will be the total you’re expected to pay.“
There may be save even for those buying lower-priced homes because developers will often cover bond registration costs and transfer legal fees as a purchase incentive.
If you’re not buying the it as a rental investment, buying off-plan save and also allows you the opportunity to customise the layout and finishes to your home.
Buying off-plan also gives buyers the opportunity to make a quick return on investment – provided the it is located in a high-demand area – by flipping the property or reselling it before construction is complete.
The major reason for purchasing a property off-plan is generally seamless. Investing in a property that is newly constructed means you’re likely to encounter fewer maintenance issues than when purchasing an old property.
While there are several attractive benefits to buying off-plan, there are also a few pitfalls to be aware of before making this decision.
If you don’t do adequate research into the developer or builder you could well find yourself invested in a dubious development.
What we do in www.naicpropertyconsult.com is to investigate the developer’s track record and reputation, and to confirm if they are registered with CAC, and other real estate regulating agencies.
Has the company successfully completed previous projects? Have they done so in record time? Is the developer and the builder the same person or company? If not, then look into the builder’s work as well.
If your intention is to rent out the home then it’s a good idea to do some recon in terms of finding out the percentage split between buyers who are buying to live in the home and those who are purchasing for rental investment purposes.
You don’t want to buy a home with the intention of selling it in an estate where everyone is doing the same. This is because, when a large percentage of the owners of other homes in the development intend to sell or rent their properties, the situation may become saturated and you will be forced to lower your asking price, potentially reducing your ROI.
©Chimankpa Naic Nwakanma