OFFPLAN PROPERTIES AND THE BENEFITS OF INVESTING IN THEM
An off-plan property simply means a property that is planned but has not been built or, if building has started, has not been completed. They are properties that are under development and construction. Buying off plan means committing to purchasing a property before it has been completely built. Both residential
and commercial real estate can be bought off plan. Often this means making a commitment from project conception i.e., from when the property is just a sketch on paper or a 3D image on computer. However, this is not always the case as an off-plan property can also be one on its way to being built: maybe the foundation has just been completed or it’s yet to be plastered.
When you buy an off-plan property, it means that you are buying into the concept and design of the development with hopes that the project execution process will be a favorable one and the end product matches your expectation. You are also trusting that the developer has the values declared or portrayed to deliver on agreed deliverables. Building a house that can stand the test of time requires great precision and accuracy from top-notch professionals who can be held accountable. The dearth of such professionals and the rigors of building a house from scratch can sometimes be a tall order for an individual. For homebuyers who do not wish to go through the rigors of building from scratch, the off-plan property
becomes a preferred option. It offers the opportunity for some personalization while taking away the stress of building by yourself.
BENEFITS OF INVESTING IN AN OFFPLAN PROPERTY
1. Flexible payment plans: instead of paying a lumpsum, off plan properties allow you to stagger your payments in a manner that ensures you maintain your liquidity throughout the construction period. Most developers charge only a 10% – 20% initial deposit and permit the home buyers to settle the 90% during construction which takes between 24 and 36 months. This eases the burden of raising capital, allowing you to plan your finances.
2. Capital appreciation: Off plan properties offer capital gains. How? You will be buying the property at its present price and because real estate increases in value over time, your home or your apartment will increase in value as construction progresses. By completion, your residence will be valued at a higher price than you bought it for, granting you significant capital gains. Furthermore, many off-plan developments tend to be situated in neighborhoods that are just developing and such developments tend to enhance the overall value of the neighborhood
especially if they are large. This type of scenario leads to appreciation in the value of properties in that neighborhood with the result that by the time the development is being completed the value of the properties within same tend to be significantly higher than the value at which they were bought off plan thus resulting into capital appreciation.
3. It is brand new: Off plan means you’ll eventually be owning a brand-new home, built with best-in-class materials, modern-day fixtures, and with up-to-date architectural provisions such as smart home capabilities or energy efficient appliances. Everything being brand new means you will not incur any maintenance costs in the immediate future, thereby saving you costs in the long
run. In case you are buying property as an investment, brand new homes also attract tenants who are often willing to pay a premium to live in new spaces which translates to more rental income.
4. Custom finishes: Another benefit of off plan purchases is the possibility it creates for one to make modifications to the building design at the early stages of construction and to also have finishes or building components specified to one’s taste and preferences. Developers can allow changes in the unit layout, and you can determine finishes in advance, such as your home’s color scheme, fittings, and your preferred type of furniture if applicable.
5. Choice Location: A further benefit conferred by off plan property purchase is the opportunity to pick one’s preferred location within a particular development especially if one is able to key into the development at an early stage. This is as opposed to the case of an already built-up property that has its location already fixed. This means that one can decide exact location of unit, floor or wing of whichever property he intends to buy.
Finally, one of the best benefits of purchasing off-plan properties from the Periwinkle Brand is that notwithstanding the likely appreciation in property values over the construction period, prices tend to be locked in at the level at which the buyer enters into the transaction. This simply means that instalments made on any of our properties bears no additional interest even as construction
progresses and value increases.
Whether you are looking to buy property as an investment venture or as a homeowner, off plan developments are a great option. What you need is a trustworthy and reliable developer that will enable you realize these gains and we do hope the information herein is enough to convince you it’s well worth a
Azuka Chinaza Sheila
Phone no: 08034456595