What is an Off-Plan Property?
The term ‘off-plan property’ refers to property available for purchase before it has been constructed. This is where the phrase ‘buying off-plan comes from; typically (but not always) relating to apartments. In layman’s terms, If you buy a house, apartment, etc., off-plan, you buy it before it is built when only the plans for it exist.
Off-Plan property is marketed to Property investors or property speculators who purchase it intending to make significant capital gains. This financial return may occur because developers who sell off-plan property often offer discounts to early adopters.
Generally, a deposit of just 10-20% of the property’s value is required to secure an off-plan property. If buyers then occupy the property, they may choose the government fully endorse the project their preferred fixtures and fittings, etc.
Buying off-plan properties can either be highly lucrative or highly risky.
Off-plan property is sometimes marketed to property speculators who purchase it to profit by taking advantage of any discounts and selling into a rising market.
Things to Consider Before You Buy
Before you decide to buy or invest in off-plan property, you need to consider things such as the benefits, the risk, and the process involved.