Off plan property purchases are becoming more popular, but many people are often hesitant to invest their hard-earned money in a property they haven’t even seen.
If you want to buy a property that is under construction or off plan, should you buy or should you wait?
You want to make sure you make the right decision before investing your money in real estate or taking out a mortgage.
With so many off plan properties options on the market, it becomes difficult to find the best one. How will you know if you’re getting what you pay for?
Find out what questions to ask before signing up for an off plan property with this guide.
What Is Buying Property Off Plan?
What is off plan property? An off-plan property is a property that is available for purchase before it has been built or completed.
Buyers purchase the property based on the plans and specifications provided by the developer or builder, often at a discounted price compared to the market value of completed properties in the same area.
What Are The Benefits Of Buying Off Plan Property?
Investing in off-plan properties is a great way to get into the property market at an affordable price.
Moreover, these off plan properties are often located in upcoming neighbourhoods with excellent infrastructure facilities, so one would be able to see great returns on their investment.
Some other benefits of investing in off-plan properties are:
– Staggering prices. These properties are sold at lower prices than those that are currently on the market.
– Higher initial rates of return. These returns are usually higher than what can be gained from investing elsewhere because these projects give investors a chance to reap the benefits before they’re finished being built up and ready for occupation.
If you need help with how to buy off plan property – then contact us at DEFINITION PROPERTIES, let’s hold your hands through the process!
How Do I Get The Right Spot For An Off Plan Property In Nigeria?
Lagos offer the best off plan investment opportunities in Nigeria. Contact DEFINITION PROPERTIES LIMITED for advise and guidance.
This is primarily due to the strong and growing demand for residential housing in this market.
The population of Lagos is growing every day, causing house prices to rise. This is expected to continue for some time.
How Do I Make Sure The Off Plan Property Is Finished To A High Quality?
Off plan properties are often sold before the building work is completed, and it can be difficult to find out whether the developer has a good reputation, unless you’re working with a realtor or company like DEFINITION PROPERTIES that knows the inside out of the property market.
It’s important to get a thorough survey before you buy an off plan property and make sure that the developer has a good track record.
With our Affordable Home Ownership Solution for Off Plan home buyers, we at DEFINITION PROPERTIES focus on just developers with solid track records and experience in building solid homes.
How Does The Buying Process Work?
The first step is to decide whether you want to buy.
Next, you will need to research thoroughly your chosen location, as well as the developer. The developer will provide information on how much of the project has been built and what stage it’s at currently.
How To Identify A Good Developer Before Buying Their Off Plan Project?
The first step is to understand the developer’s track record.
For example, what are the developer’s previous projects? Were they successful? How long ago were they completed? These are all important factors to consider.
Secondly, it is worth checking out the location of the property.
Ideally, you want to invest in a good location with an interesting design and architecture. It will increase its value and make it more attractive for future buyers or renters.
The third consideration is whether the developer has good land titles for their projects or not.
If they do, you can be certain that they know what they’re doing, and they want the best for their clients.
This means that your investment should continue to rise over time, too, without issues from the government over land disputes.
How Can I Be Guaranteed The Off Plan Property Will Be Delivered As Planned?
Off plan property can be delivered as planned if you select a developer with a proven track record and transparency about their business status and process.
If you want to be guaranteed the off plan project will be delivered as planned, it is advisable to partner with a developer with a proven track record and transparency about their business status and process. This is the best way to go around it.
And only an experienced realtor/property company like DEFINITION PROPERTIES, in the Lagos State Real Estate Market will have the right information about the developers that perform and those that don’t.
What Are Some Incentives For Buying Off Plan Very Early?
The main incentive for buying off plan property early is the potential for savings.
It is quite common to see buyers who are willing to buy units at a 10% discount or more than one year ahead of time.
This provides them with the opportunity to save money, even if they are not planning on moving in right away.
It is usually purchased by future homeowners who intend to occupy it. They are given the option to make periodic payments on the property or pay the purchase price in one lump sum.
There are many advantages to purchasing off plan property like financial security, low-risk investments, attractive interest rates and guarantees of return on investment (ROI).
One of the main reasons to buy off plan property early is that you can get a better deal on investment property, as prices are typically lower than for properties that are already complete.
Investors who buy off plan property when or before they hit the market can also try to predict future markets by investing in properties that could be worth more at a later date.
We’re sharing these tips for buying off plan properties so that you make a wise decision when you’re ready to invest in off plan property.
What Are The Risks Of Buying Off Plan?
The main one is, the property may not be built by the time you want to move in, or maybe it will be built but at a cost that is much higher than what you paid for it.
It also doesn’t cover any additional costs that may arise after purchasing, such as an increased supply chain cost for building materials. There are risks of permanent damage to the economy or the location where construction takes place.
However, the developers are very much aware of these risks, so they make sure they stick to the timeline to avoid disappointing the clients.
Can You Negotiate When Buying Off Plan?
Everything is negotiable.
Asking prices are often plastered all over the poster when properties are being built. Of course, the developers will tell you that this is the price you’ll have to pay – but it is only an asking price, and you should be prepared to negotiate.
The likelihood of success will depend on several things, such as where the property is, how many you want to buy and the level of demand, as well as how far along the development is.
If it’s very early days, there might be a deal to be done, as the developer may need funding to continue the project.
How Do I Make A Profit On Off Plan Investment?
There are 2 primary ways in which you can make money from Off plan property:
1) Buying and holding
An investor may opt to hold onto his or her investment for the long run and gain a discount.
Here’s how it works:
Let’s say you eventually get a 30% Off plan discount. You can use this money for other investments.
In a rising real estate market, where prices are always going up, price discounts gained can be upwards of 50% OR MORE by the time construction has finished.
This strategy is highly recommended for investors who are new to Off plan investment.
2) Buying and selling before it’s completed
Here’s how it works
You buy an off plan property for 50 million Naira, putting down an initial deposit of 10 million Naira.
As demand increases, 6 months down the line, properties in the neighbourhood rise by 25% meaning the house that is still under construction will be worth 12.5 million Naira upon completion.
You may be able to find a buyer looking for a home to live in, or an investor willing to pay you for the right to buy the Off plan property.
For instance, they may offer 80 million Naira for the right to buy the property at 50 million Naira upon completion.
You have sold the property for 30 million Naira profit. This strategy is extremely popular for development in prime locations. It is one of the strategies used by well-experienced investors.
When Is The Best Time To Buy Off The Plan?
During the initial phase of the project, real estate developers offer attractive prices discounts on pre-launched or new-launched projects to attract homebuyers and investors.
If you are planning to invest or looking for a home, this is the best time to book your dream home at the lowest prices.
So if you want to invest in a budget property, look no further than a new launch project.
The pre-launch phase of a residential project is when the builder makes an announcement about the project proposals and starts the sale of the same.
Can I Get A Mortgage To Buy Off Plan In Lagos Nigeria?
The short answer to this is yes.
Why Is It Cheaper To Buy Off Plan?
Off plan properties are more affordable than on the market properties for various reasons, including that they can be purchased before construction is complete and developers want to sell them as soon as possible.
Which includes the ability to purchase units before construction is completed and the desire to sell properties soon after they are built.
This often results in a discount price and a high return on property investment.
Can First Home Buyers Buy Off Plan?
Yes, first home buyers can buy off plan to save costs and relieve themselves from the stress of building their house.
Most big developers can give you a good idea of what to expect with their off plan properties, even if you can’t view the property as it will be.
Where Are The Best Off-Plan Projects In Lagos, Nigeria?
The best way to get the best Off Plan Property Lagos has to offer is to be in touch with DEFINITION PROPERTIES LIMITED. Because the best off plan projects are first sold off the market before it gets to the market.
Also, you’ll be getting up-to-date information based on your needs, that is why it’ll be important to check out our Affordable Home Ownership Solution and claim a free consultation here.
So before you buy your next Property, remember the benefits above.
How Can DEFINITION PROPERTIES LIMITED Help You With Your Off Plan Property Investment?
We can help you before following our Property Investment Matrix
STEP 1: CONSULT – Book a call with us to discuss your real estate investment needs.
STEP 2: IDENTIFY – During the consultation, we’ll uncover your investment needs.
STEP 3: ANALYSE – We swiftly rush into action to get the verified properties that meet your needs.
STEP 4: PRESENT – You’ll see your next investment through physical inspection or virtual tour.
STEP 5: ACQUIRED – Congrats, your new property is ready & we’ll take care of the paperwork.
STEP 6: SUPPORT – As a client, we’re prepared to give you all the necessary support you need.
DEFINITION PROPERTIES LIMITED will also be able to provide you with insights about the property market in the preferred location you’re interested in.
We will also handle all aspects of buying or selling property, so if you are looking for real estate agent for properties in Nigeria, then we can help.
Check out our Affordable Home Ownership Solution and claim a free consultation here….http://definitionpropertiesltd.com/contact/
Francis Akintola
#ministerofrealestate
I give professional real estate advice, negotiate and help smart investors make profitable real estate investments for high ROI, thereby creating wealthy landlords. My ultimate goal is to help you achieve your property investment portfolio goals.
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