Buying the Smart Way: Should You Buy Off-Plan Property Or An On-Plan Property?
Off-plan property is growing increasingly common, but many individuals are afraid to put their hard-earned money into something they haven’t ever seen.
Should you buy or wait if you want to buy a property under construction or off-plan?
Before investing in real estate or taking out a mortgage, you want to ensure you’re making the best option possible.
Choosing the ideal off-plan property with so many possibilities on the market can be challenging. How will you know if you are receiving the value for your money?
With this article, you’ll learn what questions to ask before signing up for the off-plan property to receive the best off-plan house at the best price.
You can use this list of off-plan property inquiries to ensure you’re receiving the best deal possible.
What Is Off-Plan Property?
What is the definition of off-plan property? Buildings that are not yet finished are known as off-plan properties.
They are purchased with the understanding that they will be finished in the future, usually within one to five years.
Because their worth is expected to improve after they are built, off-plan structures can be purchased for less than market value.
Purchasing an off-the-plan house is a fantastic way to get a great deal on a home while waiting for construction to be completed.
What Happens If Off-Plan Property Prices Drop?
If you’re considering buying an off-plan property, consider what would happen if the property price drops after you’ve purchased it.
The price is only set at the time of purchase, and there are no assurances that it will not alter in the future.
Before purchasing an off-the-plan property, you should contact a reputable real estate professional. They’ll be able to advise you on what to do if house prices drop after you buy off the plan.
Potential buyers may only make an informed judgment based on this information about which options to pursue: hold it until completion, sell at current pricing, or sell at a reduced price.
What Are The Advantages Of Purchasing Off-Plan Real Estate?
Investing in off-the-plan properties is an excellent method to enter the property market at a low cost.
Furthermore, these off-plan buildings are frequently located in up-and-coming neighborhoods with strong infrastructure, allowing for exceptional returns on investment.
Other advantages of buying off-plan properties include:
– Exorbitant prices. These homes are sold at a cheaper cost than those currently on the market.
– Higher initial return rates. Because these projects allow investors a chance to reap the benefits before they’re done being built up and suitable for occupation, these returns are frequently bigger than what can be achieved from investing elsewhere.
If you need assistance with how to buy off-plan property, call us, and we’ll walk you through the process!
How Do I Find The Right Location In Nigeria For An Off-Plan Property?
Lagos has some of Nigeria’s top-off-plan investment options.
This is owing to the market’s strong and expanding demand for residential homes.
Lagos’ population is increasing daily, leading home prices to climb. This is predicted to last for a while.
How can I ensure that the off-plan property is completed to a high standard?
Off-the-plan properties are frequently sold before construction is completed, and it can be difficult to determine whether the developer has a solid reputation unless you deal with an agent who knows the property industry inside and out.
Before buying an off-the-plan property, get a comprehensive assessment and ensure the developer has an excellent track record.
With our affordable home ownership for Off-Plan Home Buyers, we only work with developers with a proven track record of producing high-quality homes.
What Happens During The Buying Process?
The procedure of purchasing an off-plan house is complicated and varies by country.
The first step is deciding whether you want to purchase something. This is because the process can be time-consuming and costly, so you should do your research extensively before making a selection.
The next step is to investigate your desired region and the developer extensively. The developer will reveal how much of the project has been completed and at what stage it is now.
You should also ensure you are familiar with the local rules concerning property ownership in that country.
How Can I Identify A Reputable Developer Before Investing In One Of Their Off-Plan Projects?
- Learn about the developer’s previous work.
What are the developer’s past projects, for example? Were they able to succeed? How long have they been finished? All of these things should be taken into account.
- Investigate the property’s location.
You should ideally invest in a fantastic area with appealing design and architecture. It will raise the property’s value and make it more appealing to potential buyers or renters.
- Consider whether or not the developer’s projects have acceptable land titles.
If they do, you may be confident that they know what they’re doing and are genuinely concerned about their client’s well-being.
This means that your investment should continue to grow over time, even if the government has troubles with land conflicts.
What are the chances that the off-plan property will be delivered on time?
If you choose a developer with an established track record and transparency about their business status and procedure, the off-the-plan property can be delivered on time.
If you want to ensure your off-the-plan project will be completed on time, work with a developer with a proven track record who is open about their business state and procedure.
This is the most effective strategy to avoid it.
Only a knowledgeable realtor in the Property List Hub can tell you which developers are successful and which are not.
Who will be in charge of the pre-construction property?
When you buy an off-plan house, the developer will usually provide you with a list of people they recommend you contact to manage your property after it is finished.
The developer lists potential managers for my property during the off-plan time. We may also refer you to reliable partners such as agencies, architects, surveyors, and management agents.
What Are Some of the Benefits of Buying Off-Plan So Early?
The biggest benefit of purchasing an off-plan home early is the possibility of saving money.
Buyers willing to acquire apartments at a 10% discount or more than a year ahead of time are rather prevalent.
Even if they do not want to move in right away, this allows them to save money.
It’s frequently bought by prospective homeowners who plan to live there. They can make monthly payments on the property or pay the entire purchase price in one go.
Financial security, low-risk investments, excellent interest rates, and guaranteed returns on investment are just a few benefits of buying off-plan property (ROI).
One of the key advantages of purchasing off-plan property early is that you can get a better deal on an investment property because costs are often cheaper than for completed buildings.
Investors who purchase off-the-plan properties when they first become available can try to predict future markets by purchasing properties that may be worth more later.
We’re offering these off-the-shelf property buying recommendations to help you decide when you’re ready to invest in off-the-shelf real estate.
What Are The Consequences Of Purchasing Off-Plan Property?
Due to different risks, off-plan purchases are not guaranteed to be lucrative.
The biggest one is that the property may not be ready when you want to move in, or it may be ready but at a considerably higher cost than you paid.
It also excludes additional costs that may develop after the purchase, such as higher building material supply chain costs. There is a chance that the economy or the area where development is taking place will suffer long-term damage.
On the other hand, the developers are well aware of these dangers and make every effort to stick to the schedule to avoid disappointing the clients.
We’ll be producing a guide to buying off-plan properties the smart way on our blog to assist you in reducing these dangers; keep an eye out.
When buying a home off the plan, is it possible to haggle?
Everything is open to discussion.
When properties are being developed, asking prices are frequently plastered all over the poster. Of course, the developers will tell you that this is the price you’ll have to pay; nevertheless, this is merely an asking price, and you should expect to haggle.
The likelihood of success will be determined by several factors, including the property’s location, the number of units you want to purchase, the degree of demand, and how far along the development is.
If the project is still in its early stages, a bargain may be made, as the developer may require financing to proceed.
If, on the other hand, the project is nearing completion and the developer has yet to find a buyer, you may be in a strong position.
It pays to do your homework and compare sale prices of similar homes in the area, no matter where the development is in the process.
Most importantly, if you want to invest in real estate in Lagos, speak with a real estate consultant since we typically know which properties are easily negotiated.
Is it true that all of the off-plan approvals have been granted?
Request the developer’s license and proof that they have received authorization to develop the project from the local planning authority.
Inquire about the developer’s building plan, water, environment, and pollution approvals, as well as height clearance (if the building is near an airport).
What Happens If The Layout & Design Of The Off-Plan Building Changes?
Developers frequently present you with one structure and layout plan at the time of sale, only to change it mid-construction. The size of the flat could grow.
A swimming pool and club may have been shown on the original plan directly across from your unit. Instead, a new block of apartments might be built in that location.
Always read the buyer agreement carefully to see if you have any recourse if the plan changes.
Is it OK to leave early?
You may change your mind and opt not to keep an apartment occasionally.
Inquire about the possibility of an early departure. If their inventory does not sell, some developers impose restrictions on customers who want to buy on the secondary market.
Has the developer previously obstructed sales? And how much will an early exit cost in terms of transfer fees?
For this purchase, the buyer usually pays a deposit before the building begins.
On the other hand, developers are rarely required to allow buyers to terminate their contracts too soon after signing them.
If you wish to leave an off-plan house after purchasing it, it may be tough because developers may oppose your request and demand you to stay with your purchase for a set period.
Alternatively, you can sell your slot to someone else when both sides have agreed. There are several approaches to this problem. However, you must read the buyer agreement form before making a payment.
What Happens If You Don’t Pay My Off Plan Balance?
When purchasing an off-the-plan property, an initial deposit is normally required, followed by monthly payments until the purchase price is paid.
Other fees, such as continuous project management fees paid during the construction period, may apply.
The buyer pays for this sort of home in advance and does not get to live in it until it is finished.
Off-the-plan homes are frequently promoted as an alternative to traditional brick-and-mortar homes since they give you more flexibility in the type of home you desire without locking up your funds in one large lump sum up front.
If you don’t pay for your off-plan property on time, you might not be able to possess it.
An ‘off-plan payment’ is when a developer requires a buyer to pay a specified amount before the end date.
If the buyer fails to pay by the deadline, they may be charged a penalty fee or lose their deposit.
Again, read the purchase agreement document carefully; everything you need to know will be there.
When be Be Will The Building Completed?
The timescale for completion is mostly determined by how long it takes to construct your property, as most developers say in their marketing materials.
Another advantage of buying off-plan early is that if your property is one of the development’s fastest buildings, it may be completed within a few months.
If the building is more intricate and has higher specifications, the schedule could be extended to 18-24 months or even longer in some situations.
Suppose you’re considering buying an off-the-plan property from a developer. In that case, you should inquire about their completion date, how they handle delays, and any compensation they offer in the event of a delay or change in plans.
Is It Possible To Customize An Off-Plan Property?
There are numerous reasons why purchasing an off-plan property is preferable to purchasing a completed and ready-to-move-in property.
For starters, you may tailor your home to your specific wants and preferences, which is not available with ready-to-move-in residences, where the developer determines how the property should look.
This customization could be confined to the large range of functionality offered by the developers without incurring additional costs.
Off-the-plan homes for sale are typically intended to meet the needs of a wide range of people. However, if you want unique features, you may have to pay a premium to get what you want.
How Do I Profit From Off-Plan Investing?
There are two basic ways to profit from off-the-plan properties.
1) Purchase and hold
An investor may choose to keep their investment for the long term to benefit from a discount.
The following is how it works:
Let’s imagine you eventually get a 20% discount on your plan. You can put this money towards other things.
In a rising real estate market, where prices are constantly rising, price discounts might be as high as 50% by the time construction is completed.
This technique is highly recommended for investors new to off-plan investing.
2) Buying and selling before the project is finished
This is how it goes:
You pay 60 million Naira for an off-plan property and put down a 3 million Naira initial deposit (5 percent ).
As demand rises, properties in the area climb by 5% in 6 months, implying that the house still under construction would be worth 63 million Naira when completed.
You might be able to find a buyer looking for a home or an investor prepared to pay you for the opportunity to purchase an Off-plan property.
For example, they might offer 63 million Naira in exchange for the opportunity to buy the property for 60 million Naira when it’s finished.
You made a profit of 3 million Naira by selling the property. For development in prime sites, this method is particularly common. It’s one of the tactics employed by seasoned investors.
What is the minimum deposit required to purchase a home off the plan?
The developer chooses the deposit required to purchase a home off the plan, but it commonly begins at 10%.
As a result, any figure between 10% and 20% is acceptable.
Depending on the building and developer, the initial payment might range from 20% to 50%.
When is the best time to purchase a home off the plan?
To attract consumers and investors, real estate developers provide enticing price concessions on pre-launched or newly-launched developments during the project’s initial phase.
If you’re considering investing or looking for a home, now is the perfect time to get the best deal on your dream home.
So, a new launch project is a way to go if you’re looking for a low-cost property.
A residential project’s pre-launch phase begins when the builder makes a statement about the project concepts and sells them.
In Lagos, Nigeria, can I get a mortgage to buy off the plan?
The answer is yes in a nutshell.
When you buy off-the-plan properties, you’re investing in a vision rather than a finished product, and some lenders will be wary of this.
Due to the risk of a property’s value dropping before it’s even built, as well as the likelihood of delays and issues during the construction process.
Lenders will typically want a greater deposit for off-plan mortgages due to the higher perceived risk, which is not appealing to most individuals.
Why Is Buying Off-Plan Less Expensive?
Off-the-plan properties are less expensive than those on the market for various reasons, including the fact that they can be purchased before construction is finished, and developers want to sell them as quickly as possible.
This includes the opportunity to buy units before they are created and the desire to sell them as soon as they are finished.
This frequently results in a low purchase price and a great return on investment.
Is it possible for first-time buyers to purchase a home off the plan?
Yes, first-time home purchasers can buy off-plan to save money and avoid the burden of creating their own home.
Even if you can’t see the property as it will be, most large developers can offer you a decent indication of what to expect with their off-plan houses.
Some may allow you to tour show homes that are identical to or comparable to your selected property so that you can get a feel for the space and get some décor ideas.
They should supply you with a package of computer-generated images and full floor plans at the absolute least, so you know precisely what you’re getting.
It isn’t all plain sailing, either. You’ll undoubtedly need to do your homework, and buying a home in this manner presents some unique problems.
Your best buddy is a realtor who cares about what you want rather than merely pushing any off-plan property on you.
We take pride in our work at PlistHub. Let us know what kind of off-plan property you’re looking for, and we’ll walk you through the process.
Where In Lagos, Nigeria, Can You Find The Best Off-Plan Projects?
Contacting a reputable realtor is the greatest way to obtain the best Off Plan Property Lagos offers. Because the best off-plan projects are sold before they reach the market, they are sold off the market first.
You’ll also get up-to-date information tailored to your specific needs, so you should check out our previous listings and request a free consultation here.
So, before you click on the next Off Plan Property For Sale advertisement, remember to ask yourself all the above questions.
What Can PlistHub Do to Assist You With Your Off-Plan Property Purchase?
STEP 1: CONSULT – Contact us to schedule a conversation to explore your real estate investment requirements.
STEP 2: identity – During the consultation, we’ll figure out what you’re looking for in terms of investments.
STEP 3: ANALYZE – We move quickly to find the confirmed properties that fit your requirements.
STEP 4: PRESENT – You’ll get a physical inspection or a virtual tour of your next investment.
STEP 5: GETTING IT – Congratulations, your new home is ready, and we’ll handle the paperwork.
STEP 6: SUPPORT – As a client, we’re ready to provide you with all the assistance you require.
PlistHub will also be able to give you information on the real estate market in your desired location.
We will also handle all property purchasing and selling elements, so if you are looking for a real estate agent in Nigeria, we can assist you.
Click here to learn more about our previous listings and schedule a free consultation.