Off-plan is also known as the "primary market" or "off-the-plan" and just means that the property is either soon to be constructed or is being constructed.
There are a number of pro's and con's associated with purchasing off-plan.
- Allows new buyers to customize materials and finishings to their own taste.
- Once completed you have a product that shinny and new.
- Payments are deferred along the duration of the build schedule meaning that 100% of the capital to purchase is not required upfront.
- For the "right" project, purchasing off-plan has greater potential for capital appreciation if you invest early in the sales cycle.
- Diverse offering of available sizes, views and layouts.
- As the property is under construction, there is a wait time meaning that the unit is not available for immediate occupancy.
- Where there is no completed show unit there is some uncertainty on the final product that will be delivered.
- Delays can be common in off-plan projects due to heavy rains or unforeseen setbacks.
Keys to success:
It is incredibly important to do your research on the Developer that you are investing in. To do so, you need to ask questions, lots of questions. What have they built before? Was it delivered on time? Contractually what penalties are in place for late delivery of the project? How did you come to your rental projections? What are the scheduled payment plans? Are these based on a timeline or milestones in the build?
Your Fazwaz consultant will assist in helping you make a fully informed decision.