One of the cheapest ways to buy an apartment is through off-the-plan property buying. Off-the-plan property buying refers to an arrangement where buyers purchase property during its construction phase. Off-plan property is considered cheaper because companies offer buyers discounts as an incentive to invest. Another benefit of off-the-plan property is that the buyer can make adjustments to various features of the house. If you are interested in off-the-plan apartment buying, below are a few tips to guide you.
Finding a suitable property.
The apartment you wish to buy should be located in a prime location. Prime properties not only have a high demand but also fetch good prices in the market. The apartment should comprise modern features to ensure it is appealing to buyers once it is complete.
The company selling you the apartment must be reputable in real estate. Check their online reviews or seek testimonials from past clients. By doing this, you avoid being duped. Reputable companies also avoid construction delays that may significantly impact the property's value.
A contract is one of the mandatory requirements during off-the-plan apartment buying. Preferably, you should have a lawyer go through the contract to explain the terms of purchase. The contract should state the following:
- Cooling-off period. This is a period in which you analyse the investment to be sure that it is what you want. You have the right to cancel the contract without incurring any penalties.
- The project's completion date and warranties, in case the company fails to deliver as per the initial agreement.
- The contract should state the required deposit and when to pay the rest of the amount.
- The contract should indicate the property details including location, type of development, fittings and finishes.
Can you sell the property before completion?
There are various reasons that may prompt you to sell the apartment before completion. For instance, you may need the money urgently, or may wish to take advantage of a sudden increase in property prices. Before selling the property, consider extra costs you might incur including taxes, legal fees and commissions. You must also ensure that the contract allows you to sell the property before completion.
The primary considerations to make when buying off-the-plan apartments include finding a suitable property, conducting due diligence and evaluating the contract. You must exercise caution when selling the apartment before completion, in order to avoid penalties and losses.