Advantages of purchasing property “Off Plan”
The biggest attraction and benefit of an off plan purchase is the capital growth that accumulates from the planning stage of a development through to its physical completion. When you purchase a property off plan, you ‘lock-in’ your purchase at a price which the developer usually sets below market value in order to attract investments that will help him/her finance the construction of the development. When the development is completed it appreciates and its market value is much higher than its originally price. For example, if you reserved a property that is going to be completed in 12 months at € 200,000 and the property market value increases by 10% per annum upon completion, the value of the property you reserved will increase to € 240,000. If your property is in a prime location and you want to make a quick profit by selling the property, in this example, you would make a profit of € 40,000.
Athanasiou specializes in construction of property in Cyprus.
See our available houses for sale in Limassol.
In contrast to a completed property which you are buying at a higher price and for which you have to pay mortgage payments from the start - something that can eat into your profit, particularly if you are renting out the property and there was a void period - when you buy off plan you only have to pay a nominal reservation fee and no monthly payments are required until the property is completed.
Many people don’t feel comfortable purchasing a nonexistent property they cannot physically see. This gives astute buyers of property οff plan the opportunity to secure the best property in a development that will give them the greatest gain in capital growth after completion. For example, if you are investing in a property you intend to rent out, when you buy a property off plan you can minimize void rental periods and maximize your return by securing a prime plot, or apartment that is close to amenities, doesn’t suffer traffic noise and offers the best views.
In order to fund their developments and start selling off-plan properties, most developers acquire finance from a bank. Banks have very strict criteria when they approve loans for new developments and they do a lot of research on the development, the professional team and the developer's track record. Among other things the bank will check for proof of land ownership, infrastructure i.e. roads, water and electricity supplies, form of ownership the properties are to be transferred into i.e. Freehold, Cluster or Sectional Title, building specifications and schedule of finishes, price list and copy of offer to purchase agreement etc. For this reasons, when you buy a property off plan you assured of a quality property that has been built in accordance with all current laws and practices.
Finally, there is nothing more attractive than a new property. You will be the first to live in the property, and you will not have to fix damages, or clean the mess that other tenants left behind.
Athanasiou specializes in construction of property in Cyprus.
See our available houses for sale in Limassol.
In contrast to a completed property which you are buying at a higher price and for which you have to pay mortgage payments from the start - something that can eat into your profit, particularly if you are renting out the property and there was a void period - when you buy off plan you only have to pay a nominal reservation fee and no monthly payments are required until the property is completed.
Many people don’t feel comfortable purchasing a nonexistent property they cannot physically see. This gives astute buyers of property οff plan the opportunity to secure the best property in a development that will give them the greatest gain in capital growth after completion. For example, if you are investing in a property you intend to rent out, when you buy a property off plan you can minimize void rental periods and maximize your return by securing a prime plot, or apartment that is close to amenities, doesn’t suffer traffic noise and offers the best views.
In order to fund their developments and start selling off-plan properties, most developers acquire finance from a bank. Banks have very strict criteria when they approve loans for new developments and they do a lot of research on the development, the professional team and the developer's track record. Among other things the bank will check for proof of land ownership, infrastructure i.e. roads, water and electricity supplies, form of ownership the properties are to be transferred into i.e. Freehold, Cluster or Sectional Title, building specifications and schedule of finishes, price list and copy of offer to purchase agreement etc. For this reasons, when you buy a property off plan you assured of a quality property that has been built in accordance with all current laws and practices.
Finally, there is nothing more attractive than a new property. You will be the first to live in the property, and you will not have to fix damages, or clean the mess that other tenants left behind.
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