The Advantages of Buying “Off-Plan” Property

May 7, 2022by Winstonfield

The popularity of buying off-plan homes is on the rise.

Therefore, if you are looking for a luxurious newly constructed development in a fast-growing area, you may need to act soon.

The capital growth that accumulates from a development’s planning stage to its physical completion is the most attractive feature and advantage of an off-plan acquisition. Buying a house off the plan involves locking in a price that is usually lower than market value so that the developer can secure construction financing.

Upon completion, the project appreciates in value, and its market value is higher than its initial cost. For example, if you reserve a house for € 600,000 that will be completed in 12 months and the market value of the property improves by 10% every year after completion, the value of the property you reserved will rise to € 660,000 with a profit of € 60,000 in this scenario.

Most people are reluctant to purchase a non-existent property that they have not physically seen. However, astute off-plan property buyers can purchase a property in a development that will yield a significant capital gain after completion.

Most developers obtain bank financing to fund their developments and begin selling off-plan residences. When it comes to approving loans for new developments, banks have very tight standards and conduct extensive research on the project, the professional team, and the developer’s track record. The bank will look for proof of land ownership, infrastructure (roads, water, and electricity), the type of ownership the properties will be transferred into (Freehold, Cluster, or Sectional Title), building specifications and schedules of finishes, price list, and a copy of the offer to purchase agreement, among other things.

As a result, when you buy a property off the plan, you can be assured that it will be of high quality and built-in conformity with all current regulations and procedures.
Unit 3, Block 3 Maximos Plaza Makariou Avenue III, 217, Limassol, 3105, Cyprus

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