You have already locked down the price, but also got locked down since you have already paid. However, you do not have the luxury to look around or compare prices in this time. If nothing happens in the market conditions, then you buy the house at an inflated price and there’s nothing you can do about it.īetween paying for your off-the-plan house and the completion of the house, there could be around 12 months or more. If the value of the house goes up, the situation is fair for you. This means that they are predicting how much the house will cost once complete. Home buyers usually think they are locking down the price by buying off the plan and actually don’t consider the fact that the seller has taken market predictions into account before selling the house. If the market remains flat or goes down, then you will have paid an inflated price for the house.
If the market goes up, you made a good bargain. It is like literally putting all your eggs in one real estate basket. You can never be sure of how the market will turn out when buying property off the plan. And everyone likes new things! Cons of Buying Property Off the Plan Whether you choose to live in it or rent it out, it is new. The house you pay for off the plan has never had a previous owner. You can then invest in another property and continue growing your property portfolio. Even if your property’s value goes up, you will not need to pay extra. Since the settlement can be as far as three years away, it is good for you since should the market value grow, you will make a good equity growth.īuying off the plan allows you to lock in the price and saves you from any future market trends that may see the rest of the houses in the area go up in price. Since most people wait for fully constructed houses to buy, buying yours off the plan allows you to choose the best location and the one you believe is ideal for you. You also get to choose what you want changed or improved as long as it is within the set price. Before committing yourself to buying a property off plan, here are the pros and cons you need to know Pros of Buying Property Off the Planīuying off the plan gives you the chance to pick your apartment first. It is one of the easiest ways of getting onto the property ladder because you only need to deposit a small percentage of the purchase price then pay the balance later. It is a route to homeownership that some consider risky, but one which has proved very rewarding for others, especially if the project is located in a high growth area. It can be something daunting especially if you have never done it before. Off-plan purchasing is a trend that has seen many aspiring property owners acquire their dream properties by putting their money on nothing more than an architectural plan. Buying property off the plan is an arrangement where a property buyer buys a property that is yet to be constructed.
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