Buying Off Plan or from the Developer.

 

Always a great option? Buying off plan is a great way of buying. Most of the time you're only liable to fork out a 10 percent deposit to the developers. Generally you are given 12 - 24 months to build. In that period though, the value of your investment can and most likely will grow substantially and what's even better is that the transfer duty is only payable on the purchase amount of the vacant land and not the entire building amount. But, this is a CALCULATED RISK!

The problem is that developers sell off plan so that they can make a quick buck too. They tend to build one or two units and then sell the rest off plan, thus covering their costs and making them millions!

Make sure people that:
1. The responsibility to ensure that the time scale is realistic
2. He is a reputable developer
3. Checks are made on his credentials
4. Whether or not the developer is using a builder
5. Ensure you establish exactly what the development includes

So what's the trick you may ask? Well the trick is to do your home work. Check things such as, is it phase one of the development and will this off plan development have a phase two?

Check your local area plans. Are they going to be building in that area for the next 2 years, is it already developed? Factors like this will greatly influence your decision especially if you've moving into the home after development.

"Probably the most important factor for most buyers is the considerable savings they make. Those in at the beginning are buying at `wholesale prices' while people who wait to see their new home in all its finished glory pay the `retail' price."

INVESTORS FACT TIP : 60% of all off plan developments in the United Kingdom are bought Off Plan. And at a growth of 2.5% per month, within 2 years, you've made yourself a lovely little package.

A good watch out article for Buying Offplan From Developers

Off plan Loan Application

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