A Simplified Guide to Choosing Between Ready and Off-Plan Properties

When deciding between off-plan and ready properties, many potential buyers find it challenging to navigate the pros and cons of each option. To simplify one’s decision-making, here's a concise breakdown.

Cash Flow

• Ready Property: Requires an upfront payment within 30 to 60 days, including property price and additional costs like a 4% registration fee and 2% commission.
• Off-Plan Property: Lower initial outflow (15-20% down payment), followed by installments over the construction period.

ROI (Return on Investment)

• Ready Property: Immediate ROI, typically around 5-7%, through rental income or resale.
• Off-Plan Property: ROI is realized over time with potential capital appreciation as the project nears completion. Investors can also benefit by selling before handover for a premium.

Handover

• Ready Property: Immediate handover, allowing for occupancy or rental.
• Off-Plan Property: Handover usually takes 3 to 5 years depending on the project's completion.

Customization

• Ready Property: Full control over customization, such as interior design or renovations, after purchase.
• Off-Plan Property: Limited customization options offered by the developer, usually minor interior adjustments.

Resale/Mortgage

• Ready Property: Can be sold to mortgage buyers or refinanced, providing flexibility.
• Off-Plan Property: Can be resold at any stage, often at a profit (premium), though mortgage options apply only after handover.

Risk

• Ready Property: Lower risk as it’s already completed, allowing for physical inspection.
• Off-Plan Property: Construction delays and project risks exist, though high potential for appreciation over time.

Conclusion:

Both options have unique advantages, whether you prefer immediate returns with a ready property or long-term gains with an off-plan property.

Looking for expert guidance? At Sales N Lease, we provide tailored advice to help you make the best investment decision. Whether you're considering off-plan or ready properties, our team can assist in finding the perfect opportunity for you. Reach out today!