Off-plan purchases have become one of the most rewarding options for homebuyers. When you buy an off-plan property, you’re investing in the developers concept and design. It allows you some personalization while removing the hassle of constructing it on your own.
Building a house that can last a lifetime necessitates extreme precision and accuracy from qualified specialists who can be held accountable.
Buying off-plan property has so many benefits. You can check that in our previous article: Benefits of buying off-plan property. In this article, we will be discussing what you need to know about off-plan properties.
#1: Developers may fail to deliver on their promises:
When you buy off-plan property, it is common for the sales team to promise to have your home ready in a year or less. It’s all part of the “buy hype”. We have heard of cases where developers have either gone bankrupt or been unable to complete the house at the promised time.
SOLUTION: Although these situations are rare, we would advise that when you buy a property, you request a “Contract of Sale”. This will assure you that your property will be completed regardless of the time taken, at no extra cost to you.
If your home is not being completed at the said time, you can check for a “Sunset agreement” within your “Contract of Sales”. This tells you the maximum time frame your building should be delayed for before you can take legal actions.
#2: Homes may not meet your expectations.
Buying off-plan property is a test of faith. You are trusting your developer to deliver on a promise, which, to be honest, may not be equal to reality.
You may get a structure that is different from what the developer promised. It may be smaller, have less space, or even have some parts missing (like an extra toilet for guests).
SOLUTION: If you find yourself in a situation where the physical property does not meet the plan you were sold by at least 5%, you can renegotiate your property price.
When purchasing an off-the-plan property, reduce your risks by conducting thorough research into the developer’s background, the contract, and the plan itself. Make sure you get your financing pre-approved so you can negotiate effectively with the developers and settle when necessary.
If you invest in places where assets increase fast, buying an off-plan luxury property is a solid investment. As the demand for residential property continues to rise, Lagos, Abuja, and sections of Ogun state are ideal places to invest. Also, when you buy from a reputable developer who has a track record of accomplishments this reduces the risk of them failing to meet up to time/promises.
Thinkmint Nigeria strongly agrees that off plan properties are the best ways to invest and own large real estate assets globally and recommends you buy from only trusted real estate developers.