OFF-PLAN INVESTMENT
Off-plan investment is defined as buying property from developers before the building is completed, sometimes even before the foundations are laid. A large percentage of property investors over the past years have been interested in off plan Investment as it is the best way to increase their net income.
The developer of any project is always exposed to risk. In order to cap this risk as quickly as possible and limit bank loans and other debts, units are sold off-plan. Prices are very low as buyers cannot see a physical property at this stage and their decision to purchase is based purely on location, artist impressions, diagrams and computer simulations.
In addition to an excellent price, the property, due to the fact that it is off-plan, allows the investor to benefit from an excellent finance structure. In some cases, a deposit of only 10 - 30% of the value of the purchase is payable. The balance is payable over instalments, often interest free.
Off-Plan Investment Benefits
- Good discount from developers.
- You pay some part of money from the total unit price and the rest when you get the property in your hand or in instalments very often interest free.
- In case of rising markets, when the property is delivered, prices will be already have increased as the prices will have gone up during the stages of the development being built.
Off-Plan Investment Tips
- Buy in rising markets.
- Buy in hot spot.
- Buy in good rental places.
- Off-plan investments can offer purchasers the ability to achieve returns of between 10-100% in just 24 months
- If you keep the property for the purpose of obtaining rental income, good yields can be achieved and investors can enjoy a beautiful holiday home. All the while the value of the property increases at a steady pace. Guaranteed rental agreements can be very lucrative and avoid the need to find tenants for periods of up to 5 years.