Not bad except that some
of us or most of us are doing it for the wrong reasons. Although purchasing
property off plan has several advantages, fundamentals should still be
considered while such a step is taken. Property unlike futures, stocks,
derivatives, bonds and gold of other commodities, is bought to be lived in not
traded. Things to consider while thinking of an off plan purchase: 1. History
of the developer. Consistency of deliveries from quality and time frames
promised. 2. How is the project financed? Is there a secured financier behind
the project? 3. What you have in hand is a contract until a property is built.
Better make sure the contract is good enough. Your rights, penalties on failure
to deliver the promised quality or at the promised time, what’s part of the
common areas. 4. Compare prices with built property in a similar area. Off plan
projects regularly are a 3 to 5 year plan. The price difference should be
considerable from similar built property. 5. Look at the details of the
property you are purchasing. (layouts and key plans, material used, positioning
in the building, neighboring plots and future plans, window positioning and
light, proximity, traffic planning, family size planning). All those are items
you would have considered or built your decision on if looking at a built
property, why not consider when purchasing off plan. 6. Projected running costs
post completion.
Last but not least, HOW
ARE YOU GOING TO PAY FOR IT. If you’re buying property off plan to spread your
cash to the max even beyond what any financial institution would lend you then
you are planning for your big crash, or at best gambling and going all in even
without looking at your cards. Be cautious. invest healthy, homes are meant to
help us get happiness and stability not grieve and sorrow.
