Buying an off-plan property is a big decision and it is something that can be very exciting especially if it is your first time. Whilst it may be tempting to look at the glossy brochures and simply pick the property that looks to be just perfect, there are a number of things you will need to do and consider first.
Here is a list of thing we recommend you do and consider before buying off plan:
Visit the property site and check the location
What do you know about the location? You should aim to know as much as possible about the location of your project as well as the general area. Focus on factors like area demographics and trends, future construction and development, accessibility, proximity to sea and the city, property prices and demand.
Research the market and it’s conditions
Consider the current state of the property market and find out what the experts are predicting about market conditions in the next few years. Learn about any similar off plan or newly completed projects nearby? How do they compare?
Research the developer and know who you are buying from
Picking the right off plan developer is one of the most important aspects of buying off plan. Learn about the developers reputation, time in the market as well as their track history. Visit projects they have done in the past and if possible speak to previous customers and enquire about their experience.
Know exactly what you are buying
Once you have decided which project and developer you wish to buy from you will then have to pick your actual unit. As you will be doing this by looking at brochures and maybe a 3D model at best you will have to be extra careful to ensure you have covered all basis. Take note and consider:
Apartment size, floor level and layout
Apartment position and orientation –
What view you will have and will future construction affect these in any way
Room sizes, floor height and general flow of the floor plan
What is included in your purchase
Ensure that you are crystal clear and informed on what is covered as part of the purchase price. Knowing exactly what is and isn’t included in the agreed price will ensure you are not hit with any surprises later on.
Review the contract and know what you are in for
Pay close attention to:
The completion date and what happens if this is not met by the developer.
What happens if the developer falls into financial problems?
What guarantees come with the property?
What exactly are your payment obligations?
What will be your ongoing costs once the property is handed over?
These are just a handful of factors to consider when buying an off plan property. Whist finding out the answers to these may be a little time consuming it is more then worth it as it will ensure you buy what you actually want and also get what you actually paid for.
Investing in real estate is a great way to reach your financial goals and the preferred way for most people to invest. Here is some of our top tips you can follow to ensure you become a successful property investor.
1. Be Prepared And Know Your Stuff
Knowledge is power and it really the only way to take out the guess work our of your investing. Take your time, do your research and be an expert in the area and property type you are considering.
2. Have A Clear Set Of Investment Goals
Setting clear and specific investment goals before you do anything is crucial as this will help you decide what type of property and investment strategy is right for you.
Your goals should include the number of properties you need to buy each year, the return required, the type of property, and the location of each.
3. Pick The Right Location
We have all heard the saying ‘location, location, location’ for a reason and its because location is crucial. Before you even go look at a property make sure that its located in a location that satisfies your investing criteria. If you are buying for capital appreciation then ensure the area is one that is likely to experience growth. Alternatively if you are a buy to let investor then ensure the current returns on offer meet your requirements.
4. Know Your Budget
Before investing in property it’s crucial you have a thorough understanding of your financial position and exactly what you can and cant afford. If you plan on buying with finance then its important that you ask your bank for a pre-approval of your investment loan, so you know exactly how much you are eligible to borrow before you start searching for properties.
5. Know Your Ongoing Costs
Its one thing budgeting to purchase a property but unfortunately the expenses of owning a property dont stop there. When evaluating an property purchase you need to ensure you budget for rates, insurance and general repairs.
6. Don’t Get Emotional About Property
When searching for properties and going to inspections it’s very easy to get caught up in emotions. This may not be a bad thing if the property you are looking at is going to be your next home but if you are buying for investment purposes you must keep all emotion out of the decision making process and buy based on fact and figures.
Over the years more then any other industry, the real estate industry has proved to be the one of the most if not the most effective way for investors to reach their financial goals. In fact if you were to look at the billionaires of today you will find that the large majority got to where they are through, yes you guessed it, real estate!
So why is real estate investing such a great way to get ahead? Let’s have a look at just 3 of those reasons.
Gain more leverage
Real estate is one of a very few investment vehicles where getting access to the bank’s money is actually rather easy (provided you have a steady job and meet some rather basic criteria). The ability to make a down payment, leverage your capital, and in turn increase your overall return on investment is simply put, amazing.
It’s more accessible and easier to research than investing in the share or the stock market
Unlike investing in the stock market, investing in property is a lot of the time actually rather simple. At its most basic, you can simply jump online and start looking at properties, see the one you like and go ahead and buy. This is not to say there isn’t more to getting property investing right than just picking a property, but a significant amount of research and the process can be done online or by visiting different areas, open houses and auctions.
Its tangible and you have lots of control
One standout reason why so many investors are attracted to property is due to the fact its a tangible product, something we can see and feel with our own hands. This attribute in many ways mean investors have control. On owner can do a lot with a property they own. They can choose to simply lease it or they may choose to renovate, subdivide or in some cases develop. This flexibility give owners a multitude of options you simply don’t get with an investment like shares.
Welcome to our site – It’s great to have you. As the name would suggest this blog is all about off plan properties. We feel this is one of the very best way to invest in the real estate market so we plan on covering just about everything to do with buying off plan property. Our posts will include handy buying guides, invester information and from time to time we will also make certain recommendations. With over 10 years in the industry we have excellent connections with developers from all around the world and would be happy to assist you with your next purchase. See our contact page and dont hesitate to get in touch.