Which Off-Plan Housing Projects Make Sense to Buy?

For people interested in buying real estate through long-term installments, buying an off-plan house from a development project may be a suitable option. However, it’s important to note that project houses may not always yield great returns in the short term and could turn into a nightmare if handled by the wrong people. Although buying a house that is still under construction can be risky, the opportunity to own a property at a lower price during the construction phase can be very enticing. It’s essential to exercise caution and carefully consider all factors before making a decision.

This approach, commonly еmployеd by large construction companies, is now being adopted by smallеr-scalе contracting firms as well. Aftеr asking thе right quеstions and taking logical stеps, sеlling a house that is in thе projеct phasе can bе highly advantagеous. Howеvеr, you havе to bе careful against potential dеcеption and thе possibility of facing long-term struggles. If you lack knowledge on this subject, it would be wisе to consult with an еxpеrt for guidancе.

When it comes to buying an off-plan house from a project, there are both advantages and disadvantages to consider. It’s important to be cautious and choose wisely because, for many people, this represents a significant financial commitment. To determine which project is best for your needs, consider the following factors.

What Should You Consider When Buying Off-Plan Homes?

When purchasing an off-plan house from projects that have not yet started or are under construction, it’s crucial not to solely focus on the advantages but also pay attention to key points:

1. Review the Sales Agreement

  • Seek legal advice from a lawyer to fully understand the contract terms.
  • Document all conditions in writing.

2. Financial Planning

  • Plan your home purchase financially, by researching loan terms and interest rates.
  • Maintain a good credit history to access favorable interest rates.

3. Read Technical Specifications

  • Reading the technical specification provides clear information about the house’s interior and exterior usage areas upon completion.
  • It includes details about fixtures, materials, and standards for domestic installations.

4. Construction Quality and Warranty

  • Verify the construction quality and ensure quality materials and craftsmanship are used.
  • Inquire about the warranty and service provided.

5. Costs and Additional Charges

Investigate additional costs such as taxes, commissions, and dues beyond the apartment price.

6. Research the Developer

  • Examine the past projects and reputation of the construction company developing the project.
  • A reputable developer inspires confidence in your investment.

7. Design and Functionality

  • Ensure that the home’s design and functionality align with your family’s needs.
  • Pay attention to room dimensions and storage space.

8. Check Net Square Meters

  • Ask for the net square meter of the flat to avoid confusion and discrepancies.
  • Ensure this measurement is reflected accurately in your contract.

Read more: The Difference Between Gross and Net Square Meters and its Effect on Your Property

9. Location and Infrastructure

  • Consider the project’s location carefully, including proximity to transport, schools, hospitals, and future development plans.
  • Obtain clear information about the neighborhood and compare prices with similar properties in the area.

10. Beware of Fake Prices

  • Be cautious of projects that offer significantly lower prices than comparable properties in the same location.
  • Extremely cheap offers may signal potential issues with the project’s quality or hidden costs.

Purchasing an off-plan house from a project is a significant decision that requires thorough research and planning. By considering the above factors, you can make an informed choice and secure your financial future with the right project and house.

Further Reading…