Are you planning of property investment? The off-plan property might be something already on your mind, but you are not clear about what it actually is. Well, I will briefly tell you about this.
Are you planning of property investment? The off-plan property might be something already on your mind, but you are not clear about what it actually is. Well, I will briefly tell you about this. An off-plan property is a property which you buy before its building has been completed. This means, that you are purchasing a plot by just viewing the plan and building model drawings rather than the actual property which you can see.
What has ever made someone select off-plan property to invest in? That is, one of the main advantages because the price of the property would be significantly lowered and you can buy it even before it is finished. This could perhaps shape up into a consistent flow of income when you rent out or sell your property. Another bonus is you will be able to decide on house modelling as per your requirement.
What Are the Risks of Buying Off-Plan Property?
So, you are considering purchasing property off-plan, right? It might be pretty exhilarating, but you should be absolutely aware of risks which you will face in later days. One major risk is that the construction of the property may be delayed.
The other risk worth considering is the quality of the property that is been constructed. Without having an opportunity to assess the property prior to buying you can get a low quality construction of the house that is not what you wanted. This could result into costly renovations or repairs at the end of the day.
Furthermore, another risk is that the property might not increase its worth as expected. Market conditions are subject to change, and your property could end up being worth less than you paid for it. As a result, this may leave you in financial trouble if you were anticipating proceeds from the sale.
Moreover, you should also keep in mind the reputation of the property developer. Go for a thorough research on their track record of previous projects so that your off-plan property investment is in good hands.
Nevertheless, Off-Plan option in real estate can be a good choice for those for property investors; provided that they do their homework and are able to identify the possible risks and benefits.
3 Comments
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