Why Buying a Property That Hasn't Been Built Yet Could Be a Good Idea for You
Posted on: 14 November 2017
Money makes the world go around, and it's almost always the primary driver in the housing construction market. In other words, investors and banks want to get money flowing in as quickly as possible in relation to any new construction project, and as a consequence, an increasing number of developments are being marketed "off the plan." This means that these developers are selling the promise of a complete product, rather than the finished item and are taking advantage of the general clamour for new purchases in the industry. Why should you consider buying off the plan, if you're itching to add some properties to your portfolio?
Adding Up the Benefits
This could be a good approach for you if you are looking for some bargains, as developers will often try to sweeten the deal as they get the "money engine" moving for their project. In addition, you may find that government incentives apply, especially if you are a first-time buyer, so you may be able to enjoy certain tax benefits, as well.
Take a good look at the value of similar property in your city and see how much it may have appreciated in value over recent years. This may help you to project even more benefits, as your purchase may be expected to appreciate significantly with time.
Research First
However, don't get ahead of yourself and do a lot of research before moving on. After all, you will need to sign a legally binding contract well ahead of the property being finished and approved for occupancy.
Careful Assessment
Cast a very critical eye over all the details so that you can see how the building has been designed and what materials will be used in its construction. Consider what types of appliances will feature in each unit and whether the internal design fits in with your needs upon occupancy.
Will the people who live there (and pay your rent) be happy with everything and specifically with the common space available and the parking structure?
Take a trip down to the projected location and get a feel for the area within which your new home or apartment will be situated. Remember, even though you may be using it as a rental property, you need to determine whether it would be a good place to live and if it's in a tourist location, whether the building is likely to benefit from unimpeded access to that all-important sunshine.
The Trust Factor
Look beyond the development itself and see if you can trust the people who are behind it. Do they have a good track record when it comes to delivering this type of project, and do you consider that it is going to be adequately funded through each of the crucial stages?
Getting Ready to Sign
Before you sign, go through the contract with a fine tooth comb to make sure that the terms are beneficial to you. It's a good idea to work with an experienced real estate agent at all stages so that you don't make any critical mistakes.
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