New property developments are popping up all over the place in response to the rising demand for housing. If you don’t act fast enough, you could lose out on the opportunity to live in a world-class estate, as most of those properties will be sold before the construction even begins.
The idea of buying a house off-the-plan induces anxiety in most people, because it generally means you are entering into a contract to purchase a property prior to, or during the construction phase.
The very thought of something like this sends some people into a tailspin, but before you join them, take a deep breath and relax as we unpack some of the advantages involved in buying off-plan.
• You will usually need a small deposit to secure your home, which means you can save your cash to cover transfer costs, or reduce the capital portion of your home loan when you move in and immediately lower your minimum monthly instalment.
• The earlier you buy, the lower the price you pay. The reason for this is that as the development matures and construction progresses, the price of the units begins to increase.
• As one of the first investors in a development, you will have the opportunity to select the best properties and choice units.
• Your deposit secures the cost of your home at today’s price, which means no extra payments are required if the market value jumps prior to settlement. This is particularly important because building costs are usually rising faster than inflation.
• It may be easier for you to get a home loan if the development has been approved by one or more banks.
Buying off-plan doesn’t have to be a hair raising experience. The key to a successful off-plan purchase is to ensure that you partner with a trusted property developer like Mobus.
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