Off Plan Properties

Off Plan Properties

Off Plan Properties

About Off Plan Properties – Dubai

A property is considered to be Off-plan, if it is a property before a structure has been constructed upon it. Off plan properties or pre-constructions are usually marketed to Real Estate developers and to early clients so that the purchaser can gain an advantage in terms of securing better finance terms from the lenders.

Most of the foreign property buyers in UAE, invest in off plan properties and developments which earn them the highest returns in terms of investment.

Benefits of Off Plan Properties – Dubai

These are the benefits that off plan properties have to offer

  • Buying an Off plan property allows investors to get a purchase price at the earliest and lowest possible price, while increasing the chances of gaining the maximum return on their investments.
  • Certain investors sell off their off plan property contracts prior to a projects completion, and this maneuver allows them to cash in on capital growth while avoiding all the costs of actually owning a property.
  • Holding an off plan property for a number of years, gives investors the chance to receive excellent rental yield income, that often allows them to cover monthly loan repayments. During this time frame, they can also enjoy a holiday home, while they watch the value of their property skyrocket at a steady pace.

How does it work?

To hedge financial risk and debts, the developers of many projects will sell units off-plan. They will sell units off plan because they believe that if a buyer cannot see a completed physical property at the beginning, the price demanded will be lower, while reliance will be kept purely on the reputation of the developer, the location of the property, the artistic impressions and simulations to base their decision to purchase on.

In addition to the excellent off plan prices which you receive, some highly efficient and beneficial financing structures are often in place. It is often, that you only need to pay around 20-40% of the purchase price in the form of a deposit, while the can be paid upon completion. This can often be financed by a mortgage if necessary.

If you make the decision to invest in an off plan property, you will need to fine tune your strategy to achieve the desired returns on your investment which you expect to receive. Binayah Real Estate will help you choose the most appropriate investment strategy and also assist you in finding the property that is best suited to your investment needs.

How do they work

To hedge financial risk and debts, the developers of many projects will sell units off-plan. They will sell units off plan because they believe that if a buyer cannot see a completed physical property at the beginning, the price demanded will be lower, while reliance will be kept purely on the reputation of the developer, the location of the property, the artistic impressions and simulations to base their decision to purchase on.

In addition to the excellent off plan prices which you receive, some highly efficient and beneficial financing structures are often in place. It is often, that you only need to pay around 20-40% of the purchase price in the form of a deposit, while the can be paid upon completion. This can often be financed by a mortgage if necessary.
If you make the decision to invest in an off plan property, you will need to fine tune your strategy to achieve the desired returns on your investment which you expect to receive. Binayah Real Estate will help you choose the most appropriate investment strategy and also assist you in finding the property that is best suited to your investment needs.

How to Maximize Profit

The Process of Price Increase

  • Purchasing early

Prices never remain low for long, and as a property’s construction process begins, its price begins to rise as well. In the Real Estate market, one of the best times to purchase a property is during the earliest stages of development when prices are extremely competitive, but are already beginning to rise, because it is the earliest investors who get to experience the highest returns.

  • Purchasing the best units

Purchasing early also allows investors to choose the most wanted and valuable properties on any given development. The best units are the ones that offer the highest capital appreciation in the smallest amount of time and can demand the greatest rental incomes.

  • Price increases as development matures

As the project reaches its construction phase, the value of the units begins to increase. And when a completed show home is available for viewing, buyers often feel like they are taking less of a risk as they now do not need to rely entirely on simulations and plans.

  • Price appreciates as more units sell

As the number of units that are sold increases, the prices of the remaining units rise as well. Units are also sold faster, when buyers are able to physically see them. Often a times, there is a phase payment structure in place which mirrors the increasing value of the properties. To an early buyer or investor, this means that should you decide to sell your property, it will amount to a lot more now and reap higher returns, than when you made your initial purchase and paid the deposit.

Investors should choose and decide very carefully while purchasing an off plan property, making sure that the location of the property reflects a quick resale value and has a high rental demand for their buy to let option. For off plan investments, even in the worst case scenarios, if the property cannot be sold upon completion, the final balance which is due can sometimes be financed by banks within the UAE as the project nears its completion. Furthermore, the rental income earned, can be used to pay off the finance of the loan as well as increase eventual returns on investment.

  • Greek Permanent residency and citizenship eligibility
  • A Golden Visa to Europe – Investing in Portugal’s Real Estate
  • Best countries to buy the property in Europe
1

Search Your Property