Buying property can be an incredibly exciting time for aspiring homeowners. However, auction stress and high deposits can make the house-hunting process a difficult one.
For many, buying off the plans can be a great option. Here’s all you need to know about buying off the plans and the advantages it can bring.
What is buying “off the plans”?
Buying off the plans means you’re agreeing to purchase a property from a developer while it’s still in the process of being built. Developers can advertise properties for sale before the building has been constructed. Homeowners will then be able to move in once renovations have finished and the property is ready to live in.
As there isn’t a physical property to investigate, buyers can look at architect impressions and plans (hence the name “off the plans”) of what the property will look like once finished. They’ll also be able to get extra information about the project and the developer.
While the exact process can differ depending on the developer, a deposit is usually required before or after signing the contract. Once the property is fully built and ready to live in, buyers then pay the rest of the fees before moving in.
The benefits of buying apartments off the plans
If you’re looking to buy an apartment, buying off the plans can be a cost-effective and flexible option. Here are several benefits of buying a property off the plans.
Get the best prices
Buying off the plans means locking in today’s price. The housing market is constantly booming, and inflation and property prices have the potential to increase exponentially.
Developers usually want to sell as many properties in the early stages as possible, so buyers can sometimes take advantage of “early bird” discounts, especially before construction starts.
Flexibility on the payment
Usually, the small deposit up front is 10%. This is great, as it gives you more time to prepare financially over the coming months and years, and you’ll be able to gain flexibility on the down payment. During this period, you can continue saving slowly, without the hassle of coming up with a large sum of money in one go. As builds usually take a long time, you’ll be able to be flexible in how you spend (and save!) your money.
Live in a brand new home
One of the best perks of buying off the plans is getting a brand new home to move into. A brand new home comes with many benefits, like modern furnishings and fixtures, excellent insulation, and optimal plumbing and electrical systems. Because it’s new, you also won’t need to undergo costly renovations or repairs for a good while. You also get first picks of the apartments, so there’s the ability to choose the best apartment with your favourite view.
Kensington Park is an excellent choice for buying off the plans, as they’re currently building a new development called The Garden, with beautiful apartments and great views of the surrounding complex.
Less stress
Buying properties can be incredibly stressful. Usually, you’ll have to battle against other buyers in auctions or skyrocketing prices. Because builds usually take a couple of years, you’ll also have more time to prepare for the moving process and space it out over a more extended period. When you buy a property off the plans, the contract is also very upfront. As a buyer, you’ll be able to see what exactly is being included in your new apartment and the process required to build it.
Potential capital gains
If you’re buying off the plans, you’ll most likely be able to benefit from the housing price growth. For example, if you purchase a property that’s only going to have a finished build in two years, each year increases the property’s value. This can give you potential immediate capital growth. This means your apartment will have actually grown in value without you even living in it.
The bottom line
Buying an apartment off the plans is a great way to save money and time, while still getting a beautiful, modern apartment at the end of the process.
To book a private tour or to learn more about Kensington Park, get in touch with the team today at 0800 725 775.