Guide to buying off-plan

When a property is purchased off-plan, it is yet to finish construction. Floorplans, CGIs and working drawings help buyers to make decisions in finding the dream unconstructed home. Generally there are two types of people are purchasing property off-plan: those who want to buy a home to live in, and those who want to use property in the buy-to-let sector. In recent years, buyers are looking to purchase their property earlier than ever before, which means that not only do they get the pick of the best plots within developments they can also sometimes avoid price increases before completion and spread payments across a pre-defined period of time.

There are many benefits to buying off-plan, including the fact that your new property will likely follow a new, modern design with materials that are adapted to new EU efficiency standards. These homes also often come with the option to make changes in the property, such as personalising the kitchen and bathrooms. As with any investments, there can also be some pitfalls to the process, such as the inability to move in straight away, meaning you may incur rent expenses while waiting. Some areas of the development may also be left unfinished, it will take time for the entire development to be populated.

Buying off-plan can be an intelligent and lucrative investment though. Read our guide to see our some top tips to consider:

Identify your needs

Are you and your family looking to live in the property or is it an investment? If it’s an investment, are your goals? Are you looking for a rental yield or long-term capital growth? Perhaps you are looking for both?

Seek financial advice

Mortgage offers tend to be done around six months before completion of the property, dependant on which lender you use. Therefore, setting up an initial meeting wit a financial advisor will help you to identify your monetary position as well as manage your expectations. Generally, you will be required to put down 10 per cent of the purchase price (minus your deposit already paid), so be prepared to spend some money from the outset.

Research the developer and the agent

With a project such as buying off-plan, you can be waiting up to five years for the completion of your property. Ensure that you are entering into this commitment safe in the knowledge that you have chosen an experienced developer with plenty of capital as well as an understanding and communicative estate agent to manage the process and the keep you updated at all phases.

Find out about any service charges

No one likes an unexpected bill. Ensure you have covered all the possible costings surrounding your purchase and subsequent residency before entering into a contract.

Contact us

Speak to your local Fine & Country agent for advice on buying or selling.