New Luxury & Off The Plan Apartments - The Pros And Cons

If you are looking to buy or rent an apartment, you should consider off the plan luxury apartments. This plan offers a builder the chance to presell some or all of the houses before constructions begin. In this type of purchase, the buyer is basing his decision to buy based on the drawings and the plans. If the builder has constructed apartments before, this can give buyers the confidence to make the purchase since it assumed that the constructor will retain the standards or even do a better job.

Transaction Details

It is advisable to involve a lawyer when getting into this type of contract. Normally, there is a standard deposit of between 5 and 10 percent. This is payable at the signing of the contract. No other payments are made until the houses are completed. The time frame from when the contract is signed to the date of completion differs, but generally, this period does not exceed two years.

Pros Of Buying Off The Plan Apartments

As a buyer, you get to secure property at a discounted rate. You will only pay the current market value of the property in hopes that once it is completed, it will be worth much more. Another advantage is that you have a window to save up to purchase the house once it is completed. This is because you need not make any other payment after the initial deposit until construction is complete.

There is a wonderful feeling that comes with owning brand new property. Again, new apartments reflect the current lifestyle trends. Customization is another perk that can come with this sort of plan. You can suggest the colors you want to have in the house. In most cases, developers will allow you to have a say in how the house will look. You can even have one of the bedrooms made into a study room or opt for a larger living area. There are tax benefits for purchasing a new property and you can take advantage of this too.

The Risks

Like any other investment, there are risks associated with buying property in this way. It is wise to be fully aware of the implications so you can make an informed decision and find ways to hedge around the risks. The first issue is that the final product remains unknown; you are simply buying a house 'on paper' without any tangible evidence. The fixtures and fittings may be different from how you imagined them.

Again, there may be delays which could go for several years. Despite the fact that you may have signed a contract with a time limit, there is no guarantee that the developer will finish within the stipulated time. There is also the risk that the developer may be declared bankrupt. What might follow is a long legal tussle which is both time wasting and expensive. The conditions stipulated in the contract must be properly analyzed, preferably with the help of a lawyer. As a buyer weigh the options of purchasing new luxury and off the plan apartments and see if they make economic sense to you.

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