Investing in Off-Plan vs Resale Property – What are the Main Differences?

Mention off-plan or “new-build” to some buyers and you can almost see their nerves rise to the surface and this can be fairly understandable since by definition, an off-plan property is one which has not been built yet, which therefore implies a risk that the developer could fail to build the property by declaring bankruptcy during the building process and leave off-plan purchasers with neither money nor a property.

However, if you choose the right developer, this risk can be less than buying a resale property and the reward can be a high-quality property at a very affordable price.

 

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Here is a brief guide to the benefits and differences between investing in off-plan property versus resale property.

  1. When considering an off-plan property, your first priority is the developer, with resale property it’s the location. The No.1 priority to successfully purchase an off-plan property is to pick your developer with care. Look for one that has been operating for a few years with a proven track record of delivering quality properties, a resale on the other hand, is complete and possibly in or near the area you want and you can take possession in a short space of time.
  2. Price, an off-plan property presents the opportunity to buy a property in the location you desire at a cost generally below that of comparable resale properties in the same area.
  3. Future proof. Off-plan property will be guaranteed to meet modern standards, be energy efficient and will not, unlike a resale possibly require renovation.

In summary, buying either a resale property or an off-plan property is a personal choice. A resale offers an established home , whilst an off-plan can offer a property which when completed , is modern and in an area where the buyer truly wants to reside or has identified as an area whereby a profit can be made. Notwithstanding the fact that a wisely picked resale may offer an investor a similar opportunity. But, all said and done, the choice is yours and as long as you are happy with your purchase, nothing else matters.

 

Offplan Checklist

1. Find an area you like, get to know the area.

2. Work with a trusted local agent and lawyer.

3. Do your due diligence on the developer – ask to see completed properties.

4. Have your lawyer hold your funds. Dont pay the developer directly.

5. Enjoy the process.

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