An off-plan property is one that has not yet been completed, an investor buys it when still in construction or in the planning stages. Buying off plan is considered a strong venture with great benefits, however some of the key factors to consider before investing financially in an off-plan property are:
The trustworthiness and professionalism of the contractors, are they transparent and accountable? Are they willing to give crucial honest information of the development at hand. The track record of the company is also important, visiting other finished developments could help gauge.
The project has to be in a good location, prime to be able to attract tenants if you are looking to buy and invest in rentals per se. In addition, flexible payment plans of the project, ideally a good payment plan should last up until the completion dates of the project. It is also important to have legal assistance to go through the contracts and help with the entire process till completion.
That being said, here are some the benefits that come with buying an off-plan property, rather than an already complete house/apartment.
Discounted prices– An off plan 2-bedroom apartment in Kilimani ,Nairobi goes from 7M to 10M but as soon as the project is completed prices start at 11.5M and above ,even 15M. This shows that an off-plan investment is affordable with flexible payment rates despite the longer waiting period of completion.
Choice of Units-On off plan it offers flexibility to tailor the units according to tastes and preferences. One has the ability to choose the finishes, fixtures and appliances of their choice since its still at the building stages and easier to alter or add.
Capital growth– The value of a property rises significantly as it nears completion, it reaches appoint where you even gain property equity before your first mortgage payment. There is also potential for market appreciation as the area in which the development grows, then the prices of the apartments/houses in that area appreciate in value too.
Rental demand– off plan properties more likely are in areas that are up and coming and developing. By the time the development is coming to completion, there are chances of increased renters who want to live in new, modern places, hence increasing the rent prices for that area. Tenants are often willing to pay a premium for brand-new apartments or houses, which come with modern amenities, energy efficiency, and contemporary design.
Flexible payment options -Most off plan development companies offer affordable payment options up until the completion of the project. The spreading of payments across a few years makes it favorable for someone looking to invest and might not have full amount at once.
There are a number of developments coming in, especially in areas like, Kilimani, Kitengela ,Kileleshwa and Westlands that the team at Afriscape Solutions can always guide on. We have partnered with other real estate agents and developers to bring you the most suitable off plan options. Give us a call at +254757102130 or send an email to info@afriscapesolutions.com