Why buy off plan Dubai

Why Buy Off Plan

Buying an off the plan has proven to be a great way for many investors to not only enter the property market but also get ahead in doing so. So why off plan? Let’s have a look at just some of the reason why buying off plan may just be the best way to buy.

Favorable Price

When buying off-plan you are basically buying based on a brochure and the promise made by the developer. There is no tangible property there for you to see and touch so in many ways there is a degree of risk that isn’t usually present if you were, say buying a ready property.  As a result, the price you pay for an off plan property is in most cases lower than that of a ready property.

Outside of the actual property itself, a lot of off plan buying opportunities are located in new and emerging communities. Buying in such communities at an early stage offers a lot of scope for capital appreciation which occurs as these communities start to take shape and reach maturity. This allows astute buyers to buy a relatively cheap property with great upside potential.

Better Choice

Buying early in a newly released off plan project allows buyers to choose the very best apartments/villas in a particular development. This plays a big part in increasing the chances of gaining the maximum return on your investment.

Buying Off Plan is Easy

One of the big attractions of buying a new off the plan property is the fact that it’s just so easy. There is no need to be doing multiple viewings, paying property inspections and going through the sometimes very frustrating conveyancing process. You simply pick the unit from the project brochure and sign the Sales and Purchase agreement. It’s really that simple.

reasons to buy off plan

Possibility to Customize

Buying a new property allows for a certain degree of customization. Depending on the type of property this could mean having the options to choose the colour scheme to being able to decide on the entire floor plan along with the overall look and design of the property.

Ability Sell Before Completion

Off plan, property buyers have the ability to sell off their off-plan property prior to a project’s completion. Assuming the market has performed well and project proved popular owners can often sell at a considerable profit. Taking into account the lack of capital gains tax in Dubai this can be a very attractive and fruitful option for a lot of investors.

Relaxed Payment plans and term

Off plan properties come with a payment plans which makes the upfront costs much lower than when compared to a ready property. The length and terms of payment plans can and do vary from developer to developer and are usually relative to the duration of the construction period. With some developers only requiring a 5% down payment and the rest linked to construction the initial outlay required is relatively low. This is a great feature for buyers who simply don’t have the required 25% deposit payable with a ready property.

You CAN finance an off plan property

Whilst it may come as a surprise to some, getting a mortgage for an off plan property is very much possible. As long as the developer you are buying from is approved by the major banks they will happily lend up to 50% of the property purchase price.

These are just some of the reason why buying off plan makes sense, however, it is worth noting that just like with any other investment, not all off-plan projects are worth investing in. There are some great projects in the market and there is definitely some not so great projects in the market which don’t come with the above-mentioned benefits. This is why it always pays to do your due diligence and engage the help of an off plan property specialist to help you make sense of it all and steer you in the right direction.

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About The Author
Charlie Budnjo

Charlie is a real estate professional with over 15 years experience in selling, buying and writing about property. Part of the Off-PlanProperties.ae team for over 8 years Charlie covers all things related to Dubai's latest project releases.