Rama Homes Ltd: Buying Off Plan vs. Ready Property.
As rents continue to rise throughout the country, many renters are considering home- ownership. Some of these potential home- buyers, however, self-disqualify themselves out of the home process because they don’t think they can afford a home or cannot save for a down payment.
There are many options out there for these home shoppers, including buying an off plan home or a ready home. The benefits of buying a home off plan can outweigh those of buying a ready home, particularly when it comes to cost.
To make things simpler, lets first of all define these terms: Off plan property: An off plan property is a property before a structure has been constructed upon it. Pre-constructions are usually marketed to real estate developers and to early adopters as developments so that the purchaser can secure much better finance terms from their lenders. Ready Property: Refers to a house or property that is ready for immediate occupancy. A property in this condition must be ready and must meet all requirements by as the governing laws.
Now that we have a clear understanding of both terms let’s discuss the three main types of property investors in the market, it is really important to clearly know to which of these groups you belong, these groups are: - Buying to sell the project on completion. - Buying to rent the property on completion. - Buying to live on the property.
Figuring out what type of buyer you are could immediately make this debate much easier. For instance if you are planning to move to the purchased property then you will most likely be interested to buy a ready property. Else if you plan sell or rent the property, then you might consider buying an off plan property since you pay lesser than what you actually get and more over you pay over a long period of time and not all at once.
Now let us discuss some of the basic pros and cons for both types of property.
You have full control of your property from the beginning.
Payment plans are not flexible, usually you will have to pay the full price at once.
You could rent it immediately.
Inflated cost - since it is a ready property the prices will be really overpriced.
You get what you exactly have chosen.
Limited choice – Once you choose a project, there is a very small chance you get preferred floor and view
Saving on rent if you plan to move in there.
Limited modification – you don’t have much choice to further modify the property internally.
You could re-sell the property anytime.
If you plan to re-sell the property you might spend lots of money remodeling.
Off Plan property
Reduce the burden on your Finances.
Control is with the developer until you receive the property.
Price usually below current market prices.
Generally no profits until you receive the property.