Buying land off-the-plan during the presale phase can offer numerous benefits, but few people are aware of them. In this blog post, we will explore the advantages of purchasing land off-the-plan, as well as the considerations that need to be taken into account to determine if it is the right choice for you.
What Is Buying Land Off-The-Plan?
Buying land off-the-plan means that you are purchasing land before it is ready to build on. This type of purchase is typically made before land titles are issued or before construction of necessary infrastructure like roads is complete. This approach is commonly used by developers to help offload some of the considerable costs of developing land, while enabling them to realize a quicker return on investment.
Advantages Of Buying Land Off-The-Plan:
There are several benefits to buying land off-the-plan that can work in your favour, including:
More Time to Save:
With off-the-plan purchases, you don't have to pay for your block until settlement, giving you extra time to save. No payment means no holding costs such as interest payments on a loan.
Minimal Deposit Required:
With an off-the-plan purchase, you can secure the best block with a minimal deposit and pay no more until settlement.
Negotiate for a Better Price:
Purchasing during the pre-sale phase provides you with an opportunity to potentially negotiate the price, as developers may be more motivated to sell.
Considerations When Buying Land Off-The-Plan:
While purchasing land off-the-plan offers numerous benefits, it does require careful consideration. Firstly, you will need to visualise the end product, as you will be buying based on a plan rather than a physical block of land. Additionally, you'll need to ask for a look at the development plan, which includes not only the estate you are buying into but also nearby future developments, local infrastructure plans as well as future lifestyle features. A land buying advocate can help you identify what you need to know.
Conclusion:
Buying land off-the-plan has numerous advantages, including extra time to save, minimal deposit requirements, incentives, and negotiation opportunities. However, it is crucial to weigh the advantages against the considerations, such as visualising your potential future property and understanding the development plan. A land buying advocate can offer valuable insight in determining if buying land off-the-plan is the right choice for you.
