THE BENEFITS OF AN OFF-PLAN PROPERTY
As the demand for living increases throughout major areas around the country, the amount of off-plan property developments continues to rise in order to keep up and prepare for the future. Off-plan properties can offer significant benefits, a greater potential for growth and profitability, buying at a low price before the property is even built.
What is an off-plan property?
Off-plan property refers to a property or development that is still in its construction or planning phases, and so hasn’t been completed yet. Unlike a property that has been constructed, it involves committing to a purchase before the property itself is built.
This means that the buyer has to be prepared to go ahead with the deal before seeing the final result, basing decisions on initial plans and brochures which show what the completed development will look like.
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BENEFITS OF AN OFF-PLAN PROPERTY
Low price and staged payment
The good thing about off-plan is that you are generally buying at a discount. Real estate developers usually give generous discounts to early believers in their project because what they are selling at the infantry stage. Some developers also offer additional discounts for investors purchasing multiple properties at any one time as an added incentive.
Some off-plan deals have the added benefit of staged payments, depending on the developer and the property. These payments can help spread the cost of the purchase and enable investors to purchase property without a significantly large deposit.
Strong capital growth
Also, as an investor, not only will you gain early-bird access to an in-demand area which allows you to jump in before significant growth, but it also gives you the opportunity to secure the lowest price entry. If the location of the property is highly demandable and has a great potential for property appreciation, the investor can make his capital gain in no time.
To find the right location for off-plan property, there are some important factors you have to discover.
If a property is purchased in 2018 but isn’t due for completion until 2020, when the property has finally been built, they will have seen their property grow in value each year. This can add tremendous value to a property, especially if it has already been purchased at a discounted price from the outset.
By the time the project is completed and has been fully constructed, the value will worth several thousand more than the amount used for investment. For instance, as of 2019, the price of an off-plan 1 bedroom apartment in Abijo goes for 5 million naira. Currently (2020), the price range is between 11 million naira- 20 million naira
Ability to re-sell at a profit before completion
As it’s more than likely that your property will go up in value before completion, investors can choose to put their property up for sale and sell at higher market value. Although this can be a good strategy for investors looking to make a profit quickly, you would see much more of a capital growth benefit by tenanting the property and also gaining the benefit of a regular rental income, in addition to capital growth.
In conclusion, to buy off-plan property, you need to know whether or not the developers have a registered government title such as Certificate of Occupancy. Most estate projects in developing areas are built or started on land bought from traditional landowners. Due to the cost and bureaucracy of perfecting the title, most companies start their marketing while going through the process. So, make your due diligence before investing.
To know more about Middlechase Property Limited, click on the link below: Middlechase Property Limited or call 08186577504.
