Buying a property off the plan involves a certain amount of risk – more so than buying an existing home. However, there are plenty of little tips and tricks you can employ to make sure you are happy with your new home.
In today’s guide, we’re going to take you through everything you need to know and give you some of the best advice for buying off the plan property. Let’s take a closer look.
Understand the pros and cons
The best way of preparing for buying off the plan is to know the advantages and disadvantages. Once you get these points into your head, it will help steer your decision making for a more positive outcome.
There are plenty of advantages. For example, you tend to get a lock-in price, which will be unaffected by market forces. So, once you buy it, the property might already be a much higher value than when you signed for the home. You don’t have to hand over any deposit money until it is finished, either – giving you a longer time to get your finances together. You can also enjoy seven years of builders guarantee, as well as various tax savings.
It’s not all great news, however. You might be disappointed with the result of your home – or even the view from your windows. You might end up paying more than the market price similar properties in the area, too, and there are no guarantees this amount will increase. There is also the chance the developer could go bankrupt or suffer from financial woes.
With this in mind, it is vital you protect yourself. A solicitor or conveyancer can help look at your agreement to make sure that you understand what you are buying into. And, of course, they will ensure that you have money-back guarantees if the developer goes out of business.
There’s a lot you can do, yourself. Make sure you visit the site and any display homes that might be there. They should give you a good indication of what to expect. Ask about other constructions, too. Your developer should be open and honest about their plans for the surrounding area. And, they will also know about other developments.
Also, check the local property market to make sure you are paying the actual market value. It’s necessary to do some estimations about where the market will be in the future, too. If house prices are dropping, will they drop even further before you buy? If they do, it could spell trouble for your investment.
Get the best price
Finally, a quick word on the price of off the plan properties. In the vast majority of cases, you will get the best price if you buy one of the first properties up for sale. The developers use these new homes as they use them to fund the rest of the building. So, they tend to dangle a low price in front of customer’s eyes to attract the most attention. As soon as they have met their financial obligations, you tend to see those prices rise quickly.
Hope this has helped – let us know your thoughts!