The question of whether you should invest in an off-plan or ready property is a common question today. According to Safura Abasniya, the general manager and partner at the Aston Pearl Real Estate, in 2008, the off-plan property sector suffered a dark phase and it was only in the fourth quarter of 2017 when it rose again and in fact exceeded the ready properties.
It is important to assess the financial situation of the buyer and the level of risk that he or she is willing to take. It is also imperative to weigh the benefits and risks involved. You also have to check the market situation and the returns you are expecting to get from the investment. The following list of pros and cons for both the off -plan property investment and ready properties will give you a clearer picture of what could be the best choice for you:
PROS
Off-Plan Property
· It reduces your financial burdens.
· The property price is usually below the current market prices.
· There are often off-plan incentives offered by developers.
· Attractive financing options made available by banks.
· You can purchase it now and pay later.
· Delays are minimized due to regulations set by the Dubai Land Development (DLD) and Real Estate Regulatory Agency (RERA).
· Only a minimal amount of down payment is required which 5 to 10 percent and payment terms are flexible.
· Under construction properties cost less than ready properties.
Ready Property
· You can see the property physically and get the overall feel of it.
· It comes with a good location and surrounding infrastructure.
· When you buy property to lease, you can receive returns fast.
· Control is 100 percent given to the buyer from the very start.
· You can save a lot from rent when you choose to stay in the property immediately.
· It is easy to resell the property right away.
CONS
Off-Plan Property
· One’s buying decision is based solely on brochures, 3D videos, and photos and there might be a surprising difference on quality.
· The developer has control of the property until you received it.
· It is not possible for you to earn profits until the property is completed.
· Projects may be delayed.
· You pin your hopes on a brochure or a mockup structure of the actual property.
Ready Property
· The price is higher, and it is required of you to pay upfront.
· The capital will most likely appreciate easily.
· Payment terms are not flexible, and you have to pay full at once.
· Your options are limited. It is likely that you will not have your preferred view or floor plan.
· You have a limited chance to modify the internal structure of the property.
· You may have to spend a huge amount when you resell the property.
Learn more about off plan property investment. Contact HBS Dubai now.
