Buying Off-Plan Property (Pre-Construction)

Off-Plan property investments around the world adopt a simple practice. The earlier the purchase within the development the cheaper it is for the investor. In many respects once the word gets out on a new release or a second phase in a development it is not unheard of that within the first day of launch, 30% or indeed as it is known in the real estate industry the "cherries" have been snapped up.

Investment hotspots the world over coupled with high quality, well located developments derive many intuitive investors to buy and sell the individual or bulk purchase properties 2-5 times over before the official "handover" of the keys. The opportunity is simply knowing where to be and at what time.

A table of information that can be applied to any off-plan development from around the world is outlined below.

The most important factor is the forecasted capital growth.

The Construction Process

Pre-Launch: Describes the first stage of the Off-Plan process.
As the developers await the building license, in many respects the license application has been presented to the local town hall, or the developer has just obtained the paperwork, the development is offered for sale to those investors who wish to reserve a unit(s). At this level the development offers the investor the highest rate of return.

0 Months License Approved
At this stage when a developer has obtained the license the developer increases the price as the land is more valuable. Clearing of the land and excavation for the foundations gets underway.

6 Months Construction
Now the foundations have been laid, the skeleton for the dwellings have been erected. The dividing walls are in place and the roof is on. During the next 6 months the plasterers start on the walls, the electricians wire the units and the kitchens and bathrooms are installed. Final painting concludes the internal and external build and the development is complete

12-24 Months Completion
On "Completion" the building works have stopped and the development has been issued with a "Habitation License" and the development is deemed safe for use