There’s a lot of uncertainty and bad press surrounding off plan developments when in actual fact there are many upsides for buyers.
To get a full picture of whether or not buying off plan is a good idea, let’s start by looking at what buying off plan means.
1. What is ‘buying off plan’?
Buying off plan is when you sign a contract to buy an apartment that is yet to be built or is in the process of being built.
Without a physical property to inspect, buyers base their decision on plans and artistic renderings of how the apartment might look, in addition to information about the project and developer.
2. What are the advantages to buying off plan?
The main advantage to buying off plan is that you agree upon a purchase price before the building is completed, and generally only need to offer a small deposit.
In theory, buying off plan means that you could pay a lot less for a property now than it’s worth at the time you move in, as property prices could increase significantly during the time it takes for the developer to build the home.
It’s a fairly logical assumption, given how property prices generally tend to go up over time. And it’s also not the only advantage to buying off plan.
3. Near-perfect condition
Another positive of buying off plan means that because the apartments are brand new, these properties will be more energy-efficient and in better condition than a lot of older homes, meaning you likely won’t need to shell out as much on repairs and utility bills in the months and years ahead.
4. Offer buyers more time
Buying off plan also gives you a bit more time to get your finances in order, as you’ll generally only need to put down a 10% deposit to secure the contract, and can use the extended construction time to save up the outstanding balance.
5. First time buyer benefits
Full exemption from registration duty is granted when purchasing off-plan or during construction under VEFA for a property value up to Rs 7 million.
A person is eligible to the first-time buyer registration duty exemption even if he or his spouse is or was the owner or co-owner of a immovable property acquired by inheritance provided the land area is now less than 20 perches.
