What should you consider before buying off plan?

1. Delays

One of the main risks to investing in off plan properties is the potential delay on construction and completion. Developers always set out construction with the best intentions; to complete development on time and within their formed schedule. However, unforeseen building delays can cause a postponement in the handover of an off plan property. This would mean that a buyer would have to wait longer to receive their property, which could prove problematic, especially in the instance of property chains. In some extremely dire situations, projects have even been cancelled due to continuous setbacks. 

2. Property Quality

Since buying off plan property entails purchasing without visiting a tangible version of the property, buyers may be potentially disappointed with the property they receive on the completion date. This could be for a variety of reasons, including high buyer standards and miscommunication with the developers.

3. Returns

Investors may not see an immediate return on their off plan property investment, as the project is still undergoing construction. This is not a consideration with ready properties, for instance, as the investor can benefit from rental yields immediately.

4. Market Analysis

Occasionally when an investor is looking to sell their investment, they find that the value of their property is less than the original price paid to purchase it. Market fluctuations and the unpredictability of the sector is a risk that needs to be accounted for when considering an off plan investment.