WHY SHOULD I INVEST IN OFF-PLAN PROPERTIES?
An off-plan property is a property which is available for purchase before it is completely constructed. Investing in an off-plan property is therefore purchasing property in advance of its completion. The demand for high quality urban living has necessitated the rise in off-plan property developments.
Below are some reasons why you should invest in off-plan properties.
1. You get properties at a lower price. Off-plan properties are typically sold prior to construction beginning at a significant discount, often with a small deposit requirement, some as low as 5% or 10% (a company I work with accepts less than 5%). This enables investors acquire properties below market value.
2. You have the opportunity to choose the choicest spot for your property in a given location. One of the biggest advantages of buying off-plan is selection. Unlike in completed buildings, you can usually select the ideal unit to suit your needs, tastes and budget when buying off-plan property. This is true when buying apartments in an apartment complex or houses in an estate. click here
3. There is room for long installment payments. In my experience, most ready apartments/ houses in Nigeria have to be paid for on outright basis or in installments not exceeding a year; but off-plan developments give you the opportunity for longer installment payments. A company I work with permits up to 5 year installment payments at 0% interest rate.
4. Your investment (property price) appreciates even when you are yet to complete payments. Some contracts even permit you to sell your unit at a profit to another party before the unit is completed or even built.
5. This might be the only option available in some prime locations as properties will not be available when completed. This is true with a real estate developer I work with. Once any of their property is completed, it is no longer available as most are even sold out months before delivery is due.
One might argue that buying off-plan properties is risky but I don’t agree with that. All you need to do is ensure you are buying from reputable developers within areas with growing levels of property demand. Properties in areas with high level of infrastructure such as a university, airport or express roads, either already built or due to be built within a few years will typically give optimum returns.
In summary, before you invest in an off-plan property, consider the property developer, location and infrastructure, and the terms and conditions of the investment.
Do you have questions concerning off-plan property investments? Do you want to invest in an off-plan property now? Do you need advice or want to invest in real estate?
If you answered YES to any of the above questions, reach out to me on Instagram
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