Buying An Off Plan Property: Here’s All You Should Know

March 23, 2022by MeritAbode0

All across Nigeria you’ll find houses of different forms, regardless of this fact, there is still a housing deficit of about 10 million in the country. As the most populous country in Africa as well as the economic capital of the continent, Nigeria has a very competitive real estate market.

In an attempt to bridge this gap of housing deficit, developers are working tirelessly to put up housing projects. The most common means of doing this is the sale of newly built houses. Another innovative way developers are achieving this is via the construction of Off Plan Properties while helping individuals commit to getting a home with extended flexibility.

What Are Off Plan Properties?

Off Plan Properties are properties that must have a purchase commitment before the building is completed. These properties are usually not yet built before payments are received, they are usually shown to clients as a 3D image or as an architectural sketch. Clients who love what they see can begin to either pay outrightly or installmentally for them. However this doesn’t apply in all situations, sometimes the Off Plan Property may already be on it’s way to completion before it is opened to prospective owners for payments. They are lucrative but they also carry a considerable risk.

Off Plan Properties and Investments

Off Plan properties offer investors an interesting investment opportunity. A simple buy and hold system gives investors quite a lot of money. It works simply by purchasing a property and selling it at a later time when houses in that location are in demand and when the value of the purchased property has considerably increased.

The other available option is simpler but still beneficial to investors. This is because when sales of these properties begin, they are usually sold at a rate lesser than normal prices. They also have a certain amount of discount for the first set of buyers. A down payment can be paid by an intending investor to secure the bonus after which the property can then be sold off at a higher price when the value of the property increases. 

In a rising real estate market such as Abuja, where prices are always going up, price discounts gained can be above 50% by the time construction has actually finished.

Risks Associated With Buying Off Plan Property

Buying an off plan property can be a tad bit risky just like almost any regular investment. Below are a few of the risks associated with buying an off plan property.

The market might fall and as a result real estate prices will go down

In a case where the demand of a certain property falls, in response to the demand fall, prices may be readjusted to take account of the low demand. This however isn’t always a common reality as many houses are usually in demand to a considerable extent in times of a fall in demand.  

Projects may face delay

Off Plan Properties usually have a proposed date of completion. While this date is usually agreed on, not many realtors or developers are able to meet up with the proposed date. This can bring about disappointment on the part of the investor. At 4Point Property, the execution dates are usually met with no form of delay. Investors can rest assured that the promised delivery time will be met.

Construction defects

Construction defects are a common problem that many buildings have. Off Plan Properties are left out as sometimes the construction may not meet the expectation of the investor. 

Asides expectations not met, the construction may also have defects. 

The good side is that this problem can be avoided by getting an Off Plan Property from a trusted real estate company. At 4Point Property, we offer investors what is best described as “what you see is what you get”. Investors can be sure that the buildings they are paying for are properly constructed with no defects.

Should I Buy An Off Plan Property?

The answer is yes!

Not only does Off Plan Properties make for a great investment choice, when bought in the right location and from the right developer they offer an affordable home of comfort and ease. Demand for Off Plan Properties have risen considerably over the years creating homes for Nigerians home and abroad with flexible payment plans.

Above all, Off Plan Properties are a great choice even though they carry a level of risk. This means that a lot of research and effort should go into deciding from whom to purchase the property from. As reliable developers, MeritAbode solves the risk problems by delivering from paper to land the exact 3D image of your desired Off Plan Property. 

 

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