Off plan, investment is the process of buying the property before it is completed according to Cytonn Investments Limited.
Property Investors and potential homeowners prefer buying off the plan since it is seen a more affordable and flexible mode of purchasing property other than when the property is already complete or going for an already existing property.
Generally, a lot of people will go for this type of acquiring property due to the high price of real estate and the long time taken to deliver units. The buyer buys the property of the plan or design stage in the development. It has become increasingly popular as the prices of the property sold are much lower than the market, and can be up to 50 percent less than the price of a completed house.
When purchasing property using this mode, it should be noted that there are key things to be considered which involve signing of three documents: The reservation form, letter if offer and the sales agreement. With these documents, the buyer will have a binding agreement with the developer just so as to ensure that whatever will be taking place is legally agreed upon.
Most of the times, a deposit is needed at the time of signing the contract then the remaining amount will be paid as the property is being developed, as agreed between the buyer and the developer.
Things to Consider When Buying Off-the-Plan:
Advantages of buying off-the-plan:
There are a number of benefits that comes along with using the off-plan mode of acquiring property and they include the following:
Disadvantages of purchasing property off-the-plan: