| if you are thinking of buying a new home, you may | | | | contracts and exchanging you will have to put your |
| be considering whether to buy a home from a | | | | deposit down ie paying this part of your money to |
| developer off plan. This means that in deciding to do | | | | the solicitors and therefore you could be losing out |
| this you are committing to purchasing a home but it | | | | on interest. |
| probably has not been built yet or only just being | | | | There is also a risk or advantage which is out of |
| started. There are some good advantages of doing | | | | everyone's control and it is a decision which you have |
| this but you need to be aware of any disadvantages. | | | | to make. As you are buying in advance you will have |
| So what are the advantages. One of the big | | | | also agreed your property purchase price. However |
| advantages of buying off plan is that you can get a | | | | during the time until your property is built and ready |
| good deal on the purchase price and usually some | | | | to be handed over, the property market can change |
| discount or incentives to buy before the | | | | and house prices in general can go up or down. In |
| development has been finished. Depending on the | | | | general property prices which you will have compared |
| size of the development, it is usually broken down | | | | to could either increase or decrease depending on |
| into different sections or more commonly known as | | | | what the property market is like at the time when |
| phases and the first phase is usually cheaper than the | | | | you receive the keys. This means that in many |
| second phase and it goes on. Depending on when | | | | cases, your new home could be worth more than |
| you approach the developer and how far they are | | | | the price when you went to buy it and if you were |
| with the building, you can have a say in some of its | | | | good at negotiating a good deal you will have an |
| presentation, for example kitchen cupboards, | | | | amount of instant equity in your home. However |
| worktops and appliances. Some developers are more | | | | there is always a chance that the property prices |
| adapting to you making changes but developers will | | | | could crash and decrease so when the keys are |
| always consider their costs and not just the direct | | | | handed over to you, your home is not worth as |
| material costs but any additional costs which could be | | | | much as you have paid for it. This is not so much of |
| incurred in waiting for deliveries and fitting which may | | | | a problem if this happens and you were going to |
| delay the development, but it is always worth asking | | | | move into it as your new home apart from you may |
| if you do want to make any changes. | | | | have to keep the house a little longer before thinking |
| However, some of the drawbacks are that you have | | | | of moving again and wait for the property prices to |
| to commit to your purchase early on, put a non | | | | increase again. However if you were looking to buy |
| refundable deposit down, sign contracts and | | | | off plan properties as an investment and sell on soon |
| exchange usually within 28 days and then wait | | | | after purchase, this means that you will probably not |
| however long until the house is built. It is worth | | | | get the right price and be able to cover your costs |
| remembering that there are usually unexpected | | | | so you may have to consider renting it out. |
| delays with these developments and the date the | | | | As you can see there are different advantages in |
| builder will have given you as an expected completion | | | | buying off plan but you need to ensure that you |
| date will probably be extended and you will probably | | | | have considered the risks and disadvantages as well |
| have to wait longer. At the time of signing the | | | | as the advantages. |