Buying Off Plan Properties means securing a new property before construction begins or is complete. Both residential and commercial developments can be bought off plan.
In most cases, the buyers rely on digitized imagery like design blueprints and architectural models of the proposed project presented by the developers, to get a visual look and gain insights into what the property would look like at round off-stage.
Essentially, when buying off-plan, you enter into a contract with the developing company to buy a property that is yet to be built. This can take from 6 up to 24 months to bring to a close –depending on the prevailing market conditions during construction.
Investors have recognized this practice to be cost-effective. It is a smart strategy for new buyers and for those looking to build their existing portfolio.
On the flip side, paying for a pre-developed product has its risks, just as with any investment. Below, we have covered the benefits of securing an off-plan property and ways to ensure you make a credible purchase.
Benefits of Securing Off-Plan Properties
Buying off-plan means you are buying the property at a rate that will remain locked, even after completion. This rate is usually below the open market value at which the completed units will be sold.
Outsourced Construction Phase
Constructing housing from the scratch is a hugely rigorous process, especially for those without any experience in the field. Buying a property off-plan gives the house owner the leverage to pass-off development burden to the developers while enjoying the freedom to follow progress.
Staged Payment Option
Most off-plan properties include attractive payment plans where buyers can pay a certain percentage as a deposit to secure their units, and spread the balance across an agreed time.
At the end of construction, the value of the property will increase, and off-plan buyers who have secured the previous price will benefit from the price lock. Investors can choose to put their property up for sale at a higher market value and earn from the difference. It is also a great strategy for investors looking to secure properties for rentals.
Adopt Design Trends
Most off-plan developments feature modern facilities and offerings to attract buyers to key into the design. Hence, they ensure to adopt new trends in the construction industry.
Off-plan developments are mostly custom prototypes. The design is pre-planned and mostly fixed. However, buyers who secure their units early on in the building phase may get the opportunity to make modifications to final fittings and finishes like color schemes and furniture, if applicable.
As attractive as off-plan deals are, due diligence must be exercised before making your purchase.
- Evaluate the credibility of the developer
- Consider how changes in the local property market and other economic conditions could impact the value of your home
- Obtain legal advice on contract documents
- Understand the rights and obligations associated with becoming an investor
- Carry out physical inspection of the proposed project.
For more information about investing in off-plan and on-plan properties – kindly contact Thinkmint Nigeria on 📞 0809 784 5065
We evaluate, investigate and maintain strong relationships with credible developing companies which allows us to source the best deals across Nigeria. Find the best selection here.