By Dr. Pooyan Ghamari, Swiss Economist
Investing in off-plan properties, which are purchased before they are fully constructed, is a strategy that many top investors favor. Here are five compelling reasons why this approach is popular among savvy investors:
1. Attractive Purchase Prices
One of the main advantages of off-plan properties is the opportunity to purchase at a lower price compared to completed properties. Developers often offer discounts during the pre-construction phase to secure early investment, allowing buyers to enter the market at a more affordable rate. This can lead to significant cost savings and higher potential returns when the property is completed and its value increases.
2. High Potential for Capital Appreciation
Off-plan properties generally appreciate in value as construction progresses. Early investors can benefit from this increase in value, as the price of the property typically rises upon completion. This potential for capital growth makes off-plan investments particularly attractive to those looking to maximize their returns.
3. Flexible Payment Plans
Investing in off-plan properties often comes with the benefit of flexible payment terms. Instead of paying the entire amount upfront, buyers can make payments in stages according to the construction milestones. This phased payment structure helps investors manage their cash flow more effectively and reduces the financial burden of a lump sum payment.
4. Opportunity for Customization
Buying off-plan allows investors to have a say in the design and layout of their property. From choosing the finishes to selecting the floor plan, investors can customize the property to suit their preferences or the demands of the market. This level of involvement can enhance the property’s appeal and value once it is completed.
5. Premium Returns on New Builds
Newly built properties typically attract higher rental income and sales prices due to their modern design, latest amenities, and lower maintenance costs. Off-plan properties, once completed, fall into this category and can command a premium in the market. This ensures a steady rental income and a higher resale value, making it a lucrative investment option.
Investing in off-plan properties offers numerous benefits, including lower purchase prices, high potential for capital appreciation, flexible payment options, opportunities for customization, and premium returns on new builds. These factors make off-plan investments a preferred choice for top investors.
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