An off-plan property means the purchase of a property at the stage of construction.
Over the last decade the demand on Cyprus off plan property was constantly growing, as many local and overseas investors had turned to the property market for bigger capital growths. Although investing in this kind of property seems to be a good proposition, you have to consider on its pros and cons.
Advantages of Off Plan Property
One of the first off plan properties’ advantages is a price factor. Developers offer discounts to the unfinished property in order to raise immediate capital for construction purposes. Another reason for the discounted rates is that developers may obtain better interest rates on their loan form investors and banks. It is obvious that the price should be lower for the development that does not have anything except floor plan and designer expressions.
An off plan property is gives you a chance to control your return during the construction period as well as to select the fittings and the fixtures to be installed during the construction.
Disadvantages of Off Plan Property
The main problem of the off plan property is that it has all the chances to disappear or to go bust. When buying off plan, consider on developer and make thorough research. If the company if well known there are big chances for the property to be completed, but if the developer is new, you have to ensure you will not loose your money.
Another risk of investing in off plan is that the property may fall in value. Nobody can predict the exact evolution of the market, so there is always chance to loose your capital.
The third problem of the off plan development is a potential difference between projected and the actual product. There is a risk that developer may use different materials and fixtures then it was specified at the beginning of the project. However if you will choose a reputable developer, the chances to have such problems are small.
Buying an off plan property you cannot be sure about the exact dates of completion, as there may be problems during construction process.
Generally buying Cyprus off plan property may provide many benefits as for investor as for the home buyer. However before purchasing Cyprus off plan property consider to make a detailed research of the property market and ask legal advice.
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