Guidelines for purchasing Off-plan properties

                                                                                         

When you purchase a property where the construction work is in progress (or there has been no construction as yet), and the property merely exists in the plans (drawings, floor plans, etc) of the developer, you are buying an off-plan property. Purchasing or investing in a property that doesn’t exist except in the developer’s plan sounds too risky, but if you are dealing with some trustworthy developer and you have done the necessary research, buying off-plan property can be a very wise decision, be it residential or commercial property. You can reserve the property by paying a small reservation fees, initial deposits are no more than 5 – 10 % followed by some installments that differ from developer to developer (or property to property).

Off-plan properties are priced significantly lower than the completed ones, first because in most cases you buy directly from the developer without involving a middle agent; as a result both buyer and seller can save on commission fees. Second, your initial deposits and installments help developer with the construction expenditures. If you are looking to utilize the property for your own residential or commercial purpose, you end up getting the 15 – 20 % discounts; otherwise you can sell or rent the property and secure some healthy profits (given everything goes according to plans). Also, investing in a property in its earlier stage makes you a stake holder so you can come up with suggestions and recommendations as well (though developers are not legally responsible to act upon these suggestions). What's more, if the property in case is some plaza or apartments, you can lock the best unit for you.
Since we are talking about an investment, there must be some risks involved (and because this investment promises high returns the risk element is also high). The first and the most obvious risk is little or no appreciation in property prices once it is completed, in worse scenario the prices may even fall, also in some rare but very unfortunate circumstances the property may not progress beyond the plans. To avoid these pitfalls, you must do some research on the developer and verify from the regulatory authorities, if the property in plans is officially permitted or not? Try to get in touch with other investors, who have already invested in that property and stay in touch, so that if the developer defaults in one way or the other, all of you can take the developer to court as a group of investor, which will be more influential than an individual Vs developer.

About the author:
William King is the director of England Wholesale Suppliers , Dubai Business Services Directory , China Wholesale Suppliers, Distributors, Dropshippers & Manufacturers and Property & Real Estate Directory . He has 18 years of experience in the marketing and trading industries and has been helping retailers and startups with their product sourcing, promotion, marketing and supply chain requirements.

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