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Smart investors
have been doing it for years and today, we are finding more and more
clients electing to do it - "Buy from plan!"
By reserving a
new property today - usually in a development ‘before it is built’ you
are buying off plan and it remains an ‘off plan’ property until close to
completion.
By reserving a
property at todays price for a project which may be completed in
anything from 6 - 24 months later you can sometimes obtain a small
discount for buying ‘off plan’, but the main advantage is that as prices
increase your reserved property price has been guaranteed by payment of
a small deposit, this saves you a lot of money! The builder/developer
will supply a timetable for the property’s completion, payment details,
for non-completion penalties, and guarantees for the building work. You
should ask to see a previous build that has been completed by the
builder to confirm the quality. New building specifications also now
mean that the quality of new builds is higher than it has ever been in
this area and improving all the time.
Payments are
usually spread over the build time but schedules can vary considerably.
A typical payment scheme may consist of 10-15% reservation fee, 2
payments of 25 - 30% during construction and the final balance upon
completion.
Buying a
property "off plan" means you get the pick of the plots! Properties with
good investment potential sell quickly and to get the best position /
location means buying as far forward as possible - often even before
there is a brick on the ground. You need a good imaginat?on to go down
this route!
You can always
come on a viewing trip later on, whenever the time is convenient for you.
If the development does not meet your needs or specifications agreed,
the developer will usually allow you to transfer the deposit (but not
the agreed sale price) to another one.
Floor plans and
technical specifications will be provided by the builder and although
changes or additions to a property can be made during the design stage
they may cost extra but less than trying to do the same at a later date.
Buying off plan also means you can usually personally have an input to
your home by choosing the bathroom suite and fittings, kitchen,
fireplace, wall and floor tiles and paint colours. If you are buying
from within a small development (usually up to 4 properties) you can
often have a say in the final size/depth of the pool/garden design and
car park area. Many developers are also offering a package which means
even after completion your property the plot will be maintained to a
high standard.
Admittedly, you
have to be somewhat brave to go down this road but if you've already
seen the area, know where you'd like to be and want a return on your
investment, then buying off plan may be the right choice for you (new
property has great rental potential). With an off-plan purchase your
property is appreciating in value even though you typically made a part
payment of only 40% of the original price. Typically this could realise
an annual capital return of over 50%. Steady capital appreciation, and
net rental yields are typically up to 8% per annum on luxury
developments and is projected for steady growth.
Some investors
who buy into a project will choose to sell their property before the
final completion date, as they are able to offer a brand new property at
the current market value thereby making a profit in most instances,
often as much as 25% by the completion date.
What else should
be considered? The sheer enjoyment your family and friends will obtain
from your holiday home in the sun, not to mention the outstanding
antiquities, all year round Golf, world renown cuisine and the very low
cost of living. And it is all 45 minutes from the international airport
of Antalya.
If you are
interested in this option please see the projects below and contact us
for details of the latest "off plan" projects.
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