An off-plan property is a property is one bought before it is constructed, when only the architectural plans are available. Obviously, it is different from buying a fully completed property, and in this article, I state some benefits of buying properties off-plan.
The first reason to buy property off plan is because IT IS CHEAPER TO BUY, when compared with already completed buildings. Usually, you will be given massive discounts to compensate you for the discomfort of not having immediate possession of your property.
Secondly, the major reason why an investor invests is TO REAP MASSIVE RETURNS ON INVESTMENT. Buying property off plan helps to achieve this. By investing off plan, you get capital gains on your property if you desire to sell it when it is completed. I know someone who bought an Abuja property off plan at the price of ₦50 million. The property was completed in 2019. When he offered to sell it in 2021, buyers were offering at least ₦130 million (This implies that on a ₦50 million investment, within 2 years, he had a choice of making a profit/capital gains of ₦80 million if he decided to sell).
Thirdly, another major benefit of buying property off plan is that IT GIVES YOU THE OPPORTUNITY TO SPREAD YOUR PAYMENT OVER A LONG PERIOD OF TIME. By making an initial deposit of 10% - 40% to show your commitment to buying the property, you can make payment over 12-24 months for some property, or as long as 5–7 years (for some property in Dubai).
The fourth reason to buy property off plan is that it will give the OPPORTUNITY TO PICK THE LOCATION OF CHOICE UNIT YOU DESIRE. Corner pieces are one of the most sought after choice unit locations which you can easily pick. This might not be possible if you are buying an already completed building and people have already picked choice units.
Fifthly, most of the times, when you buy a completed building, you don’t have the opportunity to make an input into how the building should be. You buy it the way it is. If you want to now change it to suit your taste, you have to incur the extra costs of doing so. However, if you buy the property off plan, you are given THE OPPORTUNITY TO PLAY AN ACTIVE AND COLLABORATIVE ROLE IN THE DESIGN OF THE BUILDING. You can choose the floor tiles to be used; the colour of the paintings; the wardrobe and bath tubs, to be used among others.
These are some of the benefits of off-plan properties over fully constructed properties.
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