What Is An Off The Plan Apartment
Real estate investing can be a great source of passive income. Once you’re able to successfully house the most responsible tenants from your area, you’ll be able to earn a profit long-term. If you want to invest in the real estate industry with minimal risks, consider investing in an off the plan apartment. An off the plan apartment can provide several benefits that you can’t experience from other types of properties.
An off the plan apartment is buying a property before it is built. During the time of your purchase, the physical structure of the property doesn’t exist yet; you are only paying for its plan. To paint a clearer picture of what an off plan apartment is, take note of the following points:
An Off The Plan Apartment Has Lower Purchase Prices
You won’t be able to invest in any kind of real estate if you don’t have a sufficient amount of financial capital. Regardless of the size and type you’re eyeing to buy, you will need to shell out a large amount of money in order to afford a property. You’re willing to spend a huge amount to buy a property in the hopes that this money can become your ticket to earn more in the long run. If you currently have a very tight budget, investing in an off the plan property can be a suitable option for you to take. Here’s why:
? Buying a property below the market value is one of the most obvious benefits you can get from an off the plan property. Because the property you’ll buy is still not built yet, you’ll have a lot of time to earn capital growth. For example, if you bought an off the plan apartment in 2019, you could earn capital growth between the time of your purchase up until the apartment is built. If you’re looking for a cheap investment that can turn around quickly, an off the plan apartment is your best option.
? Depending on the developer you choose to buy a property from, you might even score a bargain when buying an off the plan property. Some developers sell an off the plan property at an affordable rate because they will require your payment for the completion of the property. If you’re one of the first investors who will show interest in an off the plan apartment, you might even enjoy more discounts and deals.
An Off The Plan Apartment Actually Has A Simpler Buying Process
Aside from the capital it’ll require from them, several people have second thoughts in investing in real estate because they fear they won’t understand how the buying process works. They think that if they don’t know any real estate terms and how the industry works, other people will take advantage of them. You won’t have to experience any of these things when you choose to buy an off the plan property. Unlike buying other types of properties in the marketplace, an off the plan apartment actually has a simple buying process.
In order for both parties to experience the benefits of an off plan apartment purchase as soon as possible, both will strive to keep the buying process simple and short. The buying process will usually start once you talk to a property consultant. They will provide options for different off the plan apartments in your area and you’ll be expected to choose. After choosing, you’ll have to reserve your property, finalize your contract and pay the required down payment (which is usually around 10% of the total amount of the property). Once the contract has been signed and the down payment has been deposited, you’ll be receiving construction updates of your apartment. All of these processes can be accomplished within a few days.
Benefits of off the Plan Apartment Investing
Buying an off the plan apartment is beneficial to both the buyer and the developer. When you buy this kind of property, you’ll be able to invest in the real estate industry without spending too much money. The developer, on the other hand, benefits from this agreement because your purchase will give them peace of mind knowing that one of their properties is already sold.
Developers will usually understand how new you are in the real estate industry and will try to explain terms based on your level. They will make it easy for you to understand how the industry works and how you can benefit from buying an off the plan apartment.
Consider Other Factors
And while an off the plan apartment can seem like one of the best ways to enter the real estate investing business, it’s still best if you consider its consequences as well. Talk to other people who have invested in an off the plan apartment or ask your financial advisor for professional advice. Buying a property is one of the most important investments you’ll make in your life so it’s best if you weigh the pros and cons for you to come up with a sound decision.