Off-plan properties, also known as pre-selling,are units that are sold before the completion of a project or when it’s still in the planning stage. Examples of off-plan properties can be seen at condominiums around Metro Manila still in the planning stage. Selling units off-plan allows developers to bring in enough money to start building the project. Meanwhile, it gives future buyers opportunities for flexible payment terms and cheaper prices.
Off-plan properties are serious business. You have to be ready with any possible outcome. Consider the following factors below before agreeing to an off-plan properties transaction.
Advantages
It’s cheaper –People are seduced byoff-plan properties because it is more affordable than finished properties. Thanks to the current demand for residential units, real estate developers can offer more discounts and flexible payment schemes for off-plan units.
Better and faster ROI – Completedoff-plan properties can have values if up to40 percent than the original price. For better a return on investment, choose your property’s location wisely. Select locationswhere property values will increase in the next five years or so.
More options – Another wonderful thing about off-plan properties is that you can choose your preferred unit and floor plan. You have access to units that have the best views and amenities. You can even customize your chosen unit since construction is not yet done.
Think about it later – Since the project is not yet done, you still have time to prepare for other necessities like your new home’s furniture, appliances, and other moving in details. You just have to focus on your monthly payments for now and reap the benefits later.
Disadvantages
Sudden changes – Be aware that some off-plan properties contract includes the section “subject to change without prior notice.” Remember to always check the construction and the design of the property to see if there are any changes in what you and the developer talked about.
Delay in completion -There are times when the completion of the property gets delayed. It can be a month or a year late. Always keep in touch with the developer so that you can be updated with the changes in the development of the property.
Plans may change – No one knows what the future holds. Maybe in a year or two you no longer want or need the property. Or maybe better opportunities arise and you no longer have the chance to grasp it since you’re already tied down to this project.
What now?
If you’re still interested in off-plan properties then read the checklist below to see what you need to be armed and ready:
- Choose a reputable developer
- Prepare your monthly payments
- Consult expert brokers or lawyers
- Plan out your long-term goals
The key to successfully purchasing a property off-plan is to ask questions and keep in touch with the developer. Do not hesitate to inquire and learn as much as possible.