BUYING OFF-PLAN PROPERTY – THE BENEFITS

BUYING OFF-PLAN PROPERTY – THE BENEFITS 

By Anthony O. Anyakora

"Real estate is the closest thing to the proverbial pot of gold." - Ada Louise  Huxtable

The term “off-plan property” refers to property which is available for purchase before it has been constructed. Two major attributes to look out for when buying property as an investment are high returns and capital growth. These can be readily achieved when purchasing off-plan.

Off-plan developments are made popular by the ability to negotiate excellent discounts either before the property is built or whilst it’s under construction. Some of the benefits associated with buying off-plan property are:

*Purchase prices are prominently lower than the actual market value

*Significant capital growth can be achieved

*Ability to re-sell at a profit before completion

*Small deposits and stage payments

*Ability to influence the interior finishing

Purchase prices are prominently lower than the actual market value: One major advantage of buying off-plan is the ability to secure the purchase at below market value. Basically, this is due to developers wanting to demonstrate a certain level of sales prior to marketing the development or sell as many units as possible before completion. Some developers also offer discounts for investors purchasing multiple properties at a time as an incentive. 

Significant capital growth can be achieved: Investors who purchase property off-plan benefit mostly from house price growth. If a property was purchased in 2020, but it’s due for completion in 2022, when the property is finally completed they would have seen such property grow in value.

Ability to re-sell at a profit before completion: Given the fact that the property will go up in value before completion, investors can choose to put their property up for sale and sell at a higher market value.

Small deposits and stage payments: Off-plan deals provides the investor opportunity pay installments. These payments are spread to cover various stages of the project. It also enables investors pay at their own pace rather than “breaking the bank.” For instance a 4Bedroom terrace would sell for N50m -N55m off-plan on Orchid Road, Lekki with longer payment plan while a completed project would command between N60m-N65m with little or no payment plan.

Ability to influence the interior finishing: Off-plan property provides the investor the opportunity to change the interior design of the property with little or no extra cost. For instance the color of tiles, doors, wardrobes and kitchen cabinets, the lighting system etc. The investor may decide to change his own unit into a smart home and this would be easily achieved with less hassle.

Buying off-plan property also comes with its own risks for instance, when the developer absconds with investors fund or renege on delivery promises. However the benefits of buying off-plan property far outweighs the risk with not buying. 

Investing in off-plan property, reach us today @whitestonehomesandproperties we have a number of off-plan developments available in fantastic locations across Lagos, Nigeria.

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