Available Off Plan Investments
Guide to Buying Off Plan Property
Investing into off plan property can save a lot of money for investors and owners since its prices are a lower sale cost compared to existing or ready properties. This is a great opportunity for buyers who are looking to buy a property in a specific area since the options may become limited or it might sell out once the project is completed.
Investor have the chance to secure property ownership by buying off plan property without having to pay the whole amount since most developers offer a structured payment plan for a certain duration which sometimes can be up to few years after completion. Investors who buy early can enjoy the initial property appreciation during the first few stages as buyers’ interest increases after good marketing, word of mouth, and from the buyers who have already bought the property.
1. Do Your Homework: Research the developer’s reputation, previous developments, and track record.
Also, research the market trends and study the price range of similar off-plan properties in the same area.
2. Estimate the ROI: Return on investment is a major aspect that a buyer must keep in mind while investing in an off-plan property. Although ROI varies as per the market conditions, Dubai is amongst the cities with the highest real estate returns ranging from 7% to 9%
3. Check the Payment Plan: Understand the payment plan, including down payment, installments, and completion payment. Be aware of any additional fees, such as maintenance fees, utility fees, and property management fees.
4. Get a Professional Opinion: Hire a solicitor or a property expert to assess the legal documents, such as contract, deed, and building permit, and provide professional advice.
5. Clause by Clause Analysis: Carefully review the contract terms and conditions, including the completion date, handover terms, and cancellation policies.
6. Financial Awareness: Ensure that you have the necessary funds to cover the initial deposit, down payments, and closing costs, and consider getting pre-approved lending options.
7. Keep Updated: Keep in touch with the developer or agent to get regular updates on the construction progress, and ensure that any changes or delays are properly communicated to you.
During the early stages of the project construction, developers offer off-plan properties at a low price which gives investors the opportunity to maximize the initial capital appreciation. Once the targets are met, developers increase the price of the remaining unsold units while offering other incentives such as property management services to make them more attractive.
On the other hand, some buyers prefer completed projects over off-plan developments as they only want to buy something that is tangible. However, purchasing a property at completion means paying the full market price, and buying the same property during its construction stage costs lesser than when it’s completed.
Explore the newest off-plan projects in Dubai
Which include beachfront properties, high-floor apartments, sea view properties, and more.
