What is an off-plan property and what are the advantages?
What is an off-plan property?
Off-plan properties, referred to as pre-sale properties, are properties that are available for purchase prior to construction. There are three stages to off-plan real estate, the first stage is off-plan when construction has not started, the second stage is when the project is under construction and the 3rd stage is off-plan when it is is just finished and the activity rooms are still being finished.
What are the advantages of buying off-plan property?
Pre-constructions are usually marketed to real estate agents with the aim of properly marketing the project. Real estate agents sell off-plan properties and offer financial incentives or discounts to your real estate investors. Real estate investors prefer off-plan real estate for this reason as it offers advantageous financial conditions.
The location of the off-plan property is one of the most important elements of charm. For example, if there is a university or a new road that the property is on, or if it is planned to be built in the next few years, the off-plan property will be considered attractive. In an emerging region, a 12 to 24 month process could be an opportunity for capital growth.
What are the advantages of buying off-plan property?
1) Securing the profits from the resale of real estate
Buying off-plan property is a great investment strategy for quick gains as a residential or commercial property appreciates in value before completion.
2) Real estate investors can put their properties up for resale and sell them at a price higher than the price they bought them for.
3) Higher ROI's and capital progression benefits can be achieved by leasing properties and making profits from the steady rental income that makes up the total capital growth.
4) Buying real estate below the market price. One of the main advantages of buying off-plan property is that it compares favorably to other properties on the market. Off-plan real estate suggests additional deductions for early investors as an added lure.
5) Provides time to plan and save. With properties under construction taking several months to complete, buyers have ample time to plan ahead. There is enough time to conduct an auction of the existing property or to conclude rental agreements. In addition, by purchasing off-plan properties, investors can fund cash reserves and apply for financial interest-free installments on investments.
6) Free from state taxes. In order to boost property development and encourage international property buyers, the Turkish government has introduced innovative strategies. It allows tourists and expatriate nations to buy projects directly from the developers exempt from VAT.
