Buying off the Plan

Buying off the plan refers to purchasing a property before it has been completed and in most instances, before construction has commenced. It has become increasingly popular as apartment and townhouse developments are more frequently entering the market. The only difference here is that the client is buying off the developer's plans rather than seeing the end product.

The obvious advantage of this type of purchase is the propensity for capital growth. With consideration that it takes a substantial period of time to complete these developments, you buy at today's prices and aren't required to make a repayment until the completion of the construction. The obvious gamble here is that the market will increase while the development is taking shape and the property will increase in value by completion. It also gives you significant time to arrange finance and indeed to save extra money while waiting for the final result.

Always remember that like all purchases, there is an inherent risk and that nothing is certain in the housing market. Ensure that you don't rush into the purchase, that you do your homework before committing and that it is affordable. Treat this with the same care and respect that any property purchase would ensure.


Click here to view a list of Do's and Don'ts when considering this type of purchase.