If you’re looking to buy properties off the plan for investment purposes, we’re sure you have several questions.
There are advantages and disadvantages in constructing your own home but for investors, buying off the plan vs building a house has less risk and is more profitable.
A property that is off the plan means you’ll be buying it directly from the developers. These are pre-selling properties that are still in the process of being built. Not a lot of people are fans of this option but there are advantages to buying off the plan.
One of them is that it’s guaranteed to follow the latest regulations and building codes. There is also a high chance that these new properties will be fitted with smart home technology adding more value to the home. One more feature would be the amenities within the property or the neighborhood that’s fitted for the residents.
Of course, there are also some risks. Contracts can be complicated and changes are inevitable. Since you’re also buying from developers, you don’t have that much of a say in the build. For some, these could be deal breakers as it is very important for them to have control over what happens in the build.
Below is a list of our guidelines for when you plan to buy off the plan and how to get it right. To make the risk percentage lower, check out our suggestions.
Do your research
We keep saying again and again in our other articles how important it is to do your research before you enter into any type of investment.
Not only do you need to consider the market performance and the current rules and regulations, you also have to take note of your personal preferences, financial goals, and financial capacity.
Research also the location if it’s a place that you want to have your property. Find out what future infrastructures and projects are going to be built and developed in the area as this will affect the value of your property in the years to come.
You also have to consider how you would want to use the property. Will it be something that you and your family will use half the time and will be rented out on the other half of the year? Or will it be an all-year-round rental? Some people invest everything they have on properties and make it their main source of income.
Location is key
Proximity to essential services and other places of interests in your neighborhood can add value to your property in the future. People will pay a premium price for ease of access to establishments that they would require when traveling.
The same goes for long-term tenants that you might have. Your property can fetch for higher prices because of your choice of location.
Select a reputable developer
It is also important to select a pre-selling property from a developer with a great reputation. One of the most trusted forms of reviews is those that come directly from owners of previous properties that they developed.
Find out also the amenities that they will have on their property as this will be added come-ons for your potential tenants and short-term vacationers.
As mentioned above, there are many reasons why future investors prefer buying off the plan, but again, be reminded of the advantages and disadvantages of this. It’s always wise to consider your options for investment before you jump into anything.