Why investing in off-the-plan properties are cheaper?

Buying a home based on figures and artist impressions sounds crazy.

It is a huge risk and most investors will advise you to buy a house that exists before parting ways with millions of shillings.

Although these concerns are justified, there are good reasons worth taking the risk of buying a home off-the-plan.

We take insights from online property portal Lamudi.

The best price

The first properties released by the developer are usually the cheapest. One can save a lot by buying the property at this stage as opposed to when it is fully developed. Be among the first buyers because, developers increase the price of the properties later to cover up for the lost profits.

Big savings on stamp duty

This is one of the main reasons why people buy properties off-the-plan. One could potentially save almost half the amount and this is good especially for the first time buyers. Stamp duty can burn you dry.

Time on your side

Off-the-plan properties give you time to pay for the property over a long period of time. For example, some developers will allow to spread out the payment over the period of the development, it could be 26 months or less.

This gives enough time to organize how to move houses if you plan to be an owner-occupier.

Pick the best

As an early buyer you have the opportunity to choose the best property within the development. Some people prefer corner houses or if it’s an apartment, some will prefer the top most units which gives a better view.