Purchasing an off-plan property entails acquiring a new real estate asset prior to construction completion. It could either be a property that has been planned but construction has not commenced or an ongoing construction. An off-plan investor is buying into the concept and design of the development with expectations of a favorable project execution process and delivering on project expectations. Both residential and commercial properties can be purchased off-plan.
In both scenarios, it entails making a commitment to purchase through payment- both full and partial payment based on the developer’s architectural plans rather than physical purchase.
High returns and capital growth are two essential qualities to seek when investing in real estate, and both may be readily attained when buying off-plan. Off-plan developments are currently seeing some of their highest sales levels, and this trend is only growing due to the opportunity to negotiate fantastic discounts either before or during the building process.
Buying off-plan has several advantages, and the following are a few of the most significant ones:
Discounted Purchase costs
The possibility to secure the acquisition at a lower price than market value is one of the key benefits of purchasing property off-plan. This occurs frequently as a result of developers wishing to sell a particular number of units before marketing the development or demonstrating a certain level of sales. As an added incentive, some developers sometimes provide further discounts to investors who buy many properties at once.
Flexible Payment Plans
Off-plan properties enable you to stagger your payments to guarantee that the customer keeps their liquidity throughout the construction period rather than paying all at once. Most developers only require an initial 10%–20% deposit and allow the customers pay the remaining 80% – 90% balance over the course of the project’s 24- to 36-month building period. This makes raising funds easier and enables you to make financial plans.
Brand New Property
Off-Plan purchasing is always on new properties that are safe and energy efficient. The off-plan properties are created with high-quality materials, contemporary fixtures and architectural features and with time there is a significant reduction on cost of maintenance and utility costs.
Appreciation on Capital
This is achieved through excellent ROI. Once the off-plan project is finished, the property typically appreciates in value. After completion, those who intend to sell the Off-Plan Property will be compensated with capital gains.
The attractiveness of the neighborhood or the location is one of many elements that contribute to an increase in the value of the property.
Increased rental yield
One of the primary factors driving real estate investment in Kenya is high rental returns. As the population increases in the region, there is an increased need for accommodation, especially in urban areas. There is a good probability that the investor will make more money from rentals if a customer purchases an off-plan property.