It’s all well and good to talk about buying your property, but it isn’t easy to choose which one is right for you. For that, Ksquare. ae will help you by describing some pros and cons of making the right decision while buying a property.
What does buying OFF-Plan mean?
Well, OFF-Plan means to buy a property that has to be constructed or hasn’t been built yet. It is directly purchased from the developer.
Pros of OFF-Plan Property
These properties are more affordable, and most developers do not ask for full payments at a time. So it can be more flexible for every type of investor.
It is the amount of debt you want to take while buying a property; you can take out a mortgage.
Government can give you an offer or will pay you in exchange for buying property. They will not pay, but they will give you some form of an incentive for your purchase.
- Long-term investment:
Off-plan property can take several years to build; values can grow over time, meaning your investment could be worth more before it even starts renting.
- Completion of the Project:
Investors can sell their property contracts before projects completion at a considerable profit.
Cons of OFF-Plan Property
- Can’t rent out:
The investor has no control over the property; you have to wait until the property is complete. You cannot move in or rent it out immediately.
- Construction delays:
Construction can be delayed for any reason; it could be bad weather, Government regulation, funding issues, etc. It can cause the loss of too much time.
- Developer failing to complete a project.
If the property is not completed for some reason, a lot of money will be lost. When a developer fails to complete a project, the solution always depends on how the project is funded.
- Buying Decision:
The buying decision is based on brochures, photos, and 3D videos, and there are chances that the property shown in videos or pictures may not be the same.
No doubt there is a risk with any investment. It is needed to notice the change in market valuation. It can give you profit or loss as well. When you buy off-plan property, its value is determined at the beginning of the process. Suppose, after the completion of your purchased property, its final value is less than the original value, and you are financing the handover payment with a mortgage. Your upfront payment might be higher than your expectations. However, you may get a smaller amount than expected if it’s higher.
What does buying Ready property mean?
Ready property is that which is complete and ready for residence. Some buyers think that ready property means to update or brand-new but ready property can be in any condition and is completely constructed.
Pros of Ready Property
- Immediate Possession:
When your payment is made, you can start living there. You don’t have to wait for it.
- Matches your Desire:
You can get what you see while you’re investing. You can make changes according to your desire.
- Clarity on legal issues:
As it is already completed and has all papers and documents with the owner, it is easy to check them.
- Saving on Rent:
It is good for those who live on rent because when you purchase it, you can shift immediately.
- No Service Tax:
In a ready-to-move property, the best thing is that you need not pay any service tax for what you buy, which helps you save a lot of money on your purchase.
Cons of Ready Property
- No Flexibility in Payment:
For this property, payments need to be made at once.
- Limitation in the Choice:
You can’t change the shape or structure according to what you want. If you want to rebuild, it takes a higher cost.
- More Legal Paperwork & Documentation:
Ready properties require a lot of paperwork which needs to be resolved before you can move there,
- More Cost:
Ready-to-move properties, in comparison to OFF-Plan, are expensive when you buy them.
The decision whether to buy it or not all depends upon the needs and financial situation. It is very important to know which property is good for you, either OFF-Plan or Ready-to-Move.
Square. ae gets you to make the right decision while buying it according to your circumstances. As it is the best mortgage company in UAE, it will suggest you choose the beneficial property that will fit you.