Even without a plan or completion, financial advisors consider real estate to be one of the most sustainable and valuable investments. Most economists say buying a home is a good investment decision and a safe way to diversify your portfolio.

 

When purchasing property, buyers have two options to choose from, a completed property that is ready to be purchased, that they can rennervate or re decorate to their pleasing. Or choose an off plan property which they can do the exact same to once built however, the value of the property grows as it is being built.

 

Off plan property

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When purchasing off plan property, developers give the buyer the option to buy a property before it is built/ during its construction phase. Majority of buyers pay deposits and reservation fees which the developers negotiate, majority of the time deposits being 30% or one third of the property. The rest of the payment will be paid on completion of the development. By the time the development is finished, as stated earlier the value of the property will have risen, making it be worth more in value.

 

Advantages Of Off Plan

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Price & Payment: As off plan properties are incomplete properties, this means that buyers can save money as developers are always looking to sell units as quickly as they can, meaning they are open to discounts and offers so that they can quickly move onto other projects that are in the works.

This allows buyers to purchase homes at lower prices in some cases they can even be below market value at many cases being 20% below which is a very good deal for property buyers.

Increase in property value: As off plan property is bought at a discounted rate, it increases in value as the property market is constantly moving upwards, despite factors that potentially set back the industry, these do not affect the value of off plan properties as they are being built.

As some units do not get sold before completion, they tend to have higher purchase prices once a development is complete. Making their market price go up once purchased meaning profits would be increased.

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Customisation: The earlier off plan purchases are made the more freedom there is for features to be added to the property. Allowing complete control over creativity of the property you buy, even before it’s built.

 

Completed Property

Completed properties are properties that you can move into straight away. With no waiting times. They are easy to find in terms of what you specifically want and with Google you can find a home anywhere.

 

Advantages of Completed Property

No waiting time: As buyers can be impatient, completed properties get rid of the need to wait years for a property to be built. Meaning you can move in right away and start doing up a house to live in.

Transparency and clarity: As completed houses are fully built and viewable, they can be viewed meaning that the property can be viewed so that it can be inspected and evaluated to see if it fits your needs.

Price: As a completed property is completed there are times where the property does not sell. Meaning it is sat in the inventory of a developer which increases their maintenance cost. As the property is sat in the inventory this means the price is negotiable meaning you could get the property at a cheaper price.

 

Both types of properties have their advantages and disadvantages and depends entirely on the buyer with which they should go for. Buying a house can seem scary but with the right help and guidance it can be simple. That is why at SourcedInvest we help new buyers or experienced buyers in the purchasing process and any after cares.

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