Why Should Investors Opt For Off-Plan Properties?
Off-plan properties are usually the ones that have just been launched or are in the pre-construction phase. Such properties often prove more promising in terms of long-term investment.
Real estate has always been a lucrative investment option for many. The real estate industry of the UAE is the most promising one and attracts international investors too. While completed projects are the first choice of many, off-plan properties have also gained significant momentum.
Off-plan properties are usually the ones that have just been launched or are in the pre-construction phase. Such properties often prove more promising in terms of long-term investment. You might be unable to utilize the property or sell it until it is completed, but it will pay you off in the long run.
Get into the details of this article to learn and explore why investors should opt for off-plan properties in promising markets like the UAE, and decide for yourself.
Top 5 Reasons Investors Should Choose Off-Plan Properties
Off-plan properties are getting the attention of investors for a lot of reasons. Some speculate foul play in terms of project call-offs and delayed completion. However, trusting established and reputable developers can save you from potential deceitful attempts and losses.
Here are some of the most notable reasons investors should choose off-plan real estate in the UAE.
1. Low Purchase Price
Low purchase price is the foremost reason investors should choose off-plan properties in the UAE. Generally, the developers offer special discounted deals and incentives at the time of launching projects. Buying a property at that time can provide an edge of early, as well as low bidding.
Such projects can even be in the early stages of development, so their prices are much lower than the market rate of similar but finished real estate projects. Moreover, choosing an off-plan property allows entering the real estate market at more affordable rates. You do not need to wait and save for years to buy a ready-to-move or finished property. Instead, invest in one that is in the developing phase to invest and grow your available capital.
2. Flexible Payment Options
Flexible payment options are the next reason that attracts seasoned investors, as well as first-time buyers. Real estate properties in the pre-construction or construction phase are not just affordable in terms of low cost, but also offer flexible payment. The price is low because the market value of a developing project is low.
On the other hand, developers often offer relaxed terms of payment to interested buyers. For instance, there can be a down payment of 40 to 50 % and monthly or quarterly payments of a tiny ratio like 2 to 5%. Another option can be a 50% upfront payment, a few monthly instalments of 1% and up to 40% payment at handover. The developers might even offer a personalized payment plan according to the suitability of each buyer.
3. Capital Appreciation
Capital appreciation is another promising reason to choose off-plan properties. When real estate properties move from the pre-construction to the completed phase, their value appreciates significantly. Not only does the market rate of the property increase in the meantime, but also the status of the project, which leads to capital appreciation.
Off-plan properties are often more common in developing areas where multiple projects are in the pre- or under-construction phase. In such a case, area development might increase the value of your investment threefold. Most importantly, strategic investments in off-plan properties can secure highly profitable resale potential, so make your investments wisely.
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4. Ease of Customization
Ease of customization is another leading reason to invest in off-plan properties as compared to finished projects. Not everyone invests in off-plan real estate to earn high resale value when the project completes. Some investors prefer to keep it for personal use. Projects in the pre-construction phase allow the liberty of customizing them according to their taste and preference.
Altering the design and layout of the space might be restricted, but you can customize the fixtures and fittings. You can get tailored flooring, wall paint, cabinet placement, and more. Getting the opportunity to customize the space according to your preference is not only relaxing but also cost-effective. You will not have to invest again to remodel everything.
5. Promising Rental Returns
Promising rental returns is the last reason for investors to choose off-plan real estate. While investors choose it intending to sell when its value increases, some keep it to earn rental income. Renting out the property, when the project is completed, can offer you a consistent return on investment (ROI).
Such an ROI can be used to meet the regular expenses, or you can choose to save and invest in some other off-plan property. In any case, you will get a passive source of income that can significantly contribute to your savings. Most importantly, the property will stay yours, and you can choose to sell it anytime, depending on your financial goals.
Choose Off-Plan Properties And Earn High Returns!
Off-plan properties may take a little time for completion, but as soon as they are complete, you can start yielding profits. You will be done with payment in instalments by the time the project is complete. Rent it out or sell it off, you can enjoy high profits in either case. Do not hesitate to consult experts to invest in the best property and secure your profit.
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