Buying your own house is the dream of every person because buying a house means to have a place that is completely yours and you do not have to pay rent every month for using and living in it. Owning a house is the most relaxing and satisfying feeling, but on the other hand, buying a house is the most daunting and overwhelming process for a buyer. Buying a house is the biggest financial decision of a person’s life, which brings a lot of responsibilities and challenging initial processes. You have to consider many things related to the property but, most importantly, your financial condition before you think about buying a house. Along with this, you also have investigated the property before you buy it. However, some people consider buying a house off the plan without considering its pros and cons. Therefore, in this article, factors will be discussed that a person should consider while buying a house or apartment off the plan.
What is buying off the plan?
Sometimes people buy a house off the plan, which means to invest in the property that is yet to be built. In this case, the buyer has to base their decision on the plans and artistic rendering as there is no physical property to inspect.
- Pros of buying off-plan
The first benefit of buying a house off-plan is that the property is new and untouched, and you can have a chance to contribute to the interior of the house and make it according to your needs. However, when you buy a readymade house, you are served with the particular type of interior and lifestyle that can impress most of the buyers. When you prefer buying an off-plan house, you can also customize your colour scheme and can decide other things which will depend on your package and budget.
This buying process is simpler than other buying processes. Buying off-plan provides a long list of options for the selection, unlike when you purchase an existing property, which you can only buy when it is available, and the choice is very limited. However, with off-plan, you have the choice to pick from the range of different houses, and you can also get the location of your choice.
Buying off-plan provides the buyer with the financial benefits as well in the long run because the buyer gets the property at the current property rate and the property rate gets low because it is house is incomplete and when it will be completed the property rate will automatically rise which is very beneficial for the buyer.
- Cons of buying off-plan
As for buying, a property is the biggest financial decision, and one of the main risks of buying off the plan is price because the property is new and first hand and therefore, the price of this property is considerably higher than the second-hand property. Moreover, the buyer has to do prior research on the developer before signing the contract because there is a chance that the developer might go bankrupt, and you might have to lose your deposit.
It may be hard for you to take the loan from the bank, and it could be risky as the developer can seize your deposit. Moreover, he can also sue you if the property sells for less than what you have agreed. Therefore, always make sure that you have enough deposit for the settlement when the date comes.
Another issue with buying off-plan is that the developer cancels the contract when the construction runs past the sunset date, and then the developer sells the property at the higher rates. Therefore, make sure that your developer updates the contract when the sunset date falls. Moreover, you do not get the required finish, which is a drawback of buying off the plan.