What is buying property off-plan?

What is buying property off-plan?

What is buying ‘off-plan’? Buying a house or flat off-plan means buying it before it’s been built. This might sound risky, but if you’re buying in a market where property prices are on the up and more homes are needed, it can have its rewards.

Why do developers sell off-plan?

Developers sell off the plan to entice as many sales commitments as possible to then secure from their lender the finance they need for the build. That decision usually hinges on whether sufficient finance has been secured.

Why you should never buy off-the-plan?

When purchasing off the plan, you run the risk of paying too much for a property if the market enters into a decline. Expectations. As many builders don’t allow you to see the property until construction has completed, there is the risk that the quality or layout of the build may not be what you had in mind.

What does it mean to buy property off plan?

“Purchasing a property off-plan means you’re buying from the developer and, as such, are protected by the Consumer Protection Act, which gives the buyer some insurance and necessitates the developer to take greater care and responsibility with the outcome of the project,” advises Stassen.

Do you have to put down deposit to buy off plan property?

When you commit to buying a property off-plan, you have to put down a deposit – with the rest only being payable when it’s finished. The deposit is often as low as 10%, but it can be higher. Say you buy a property off-plan for £200,000 by putting down a 10% deposit of £20,000.

Can you buy a property off plan in South Africa?

When buying a property in South Africa off plan you need to do your homework and you need to be aware of potential pitfalls. There are many stories of buyers who bought property off plan only to discover a variety of defects on the property once they had taken occupancy of the property.

How long does an off plan property last?

On big developments, the off-plan period might be as much as a couple of years – and a lot can change in the mortgage market over that time. Mortgage offers usually last for a maximum of six months, so you can’t lock your mortgage in at the same time as you reserve your plot.

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