When buying real estate the first question is whether to opt for an off-plan property (a property that is being built and hasn’t been completed) or to buy a ready property, a property that is ready to move in.
The option that suits your needs depends on what you want to do with the property after the purchase. There are 3 options:
There are both pros and cons to buying ready property and below the main points of interest are combined in a table.
|Advantages Ready Property||Disadvantages Ready Property|
|Immediate full control over the property||In most cases, the whole sum has to be paid at once. No flexible payment plans as with off-plan properties.|
|Immediate rental yield||High prices (compared to off-plan)|
|What you see is what you get||Limited choice when it comes to which floor, view, etc.|
|When living there, you save on rent||Modification options are limited|
|Possible to re-sell the property at any time||Re-selling might be hard and extra costs may be involved|
|Advantages Off-plan Property||Disadvantages Off-plan Property|
|Purchase a property and pay later||No control over the property until handover|
|Attractive payment plans and bank loans||No ROI until handover|
|Low prices (often below market level)||Handed over property might differ from what was in the brochure|
|Off-plan incentives could include things as free maintenance for several years, post-handover payment plans,||Possible delays/cancellation|
|High ROI||Changing market conditions|