What exactly is an
Off Property Plan

Investing through an off plan property means buying a property that hasn't been built yet or is still under construction/renovation. In other words, it means you make your decision to purchase a property based on the building plans and designs, rather than the finished product itself.

Many people, be it investors or home owners alike, see buying off the plan as a good way to purchase a brand new property.

Pros & Cons

What you need to consider

If you consider an investment through Off Property Plan, there are some key aspects that you need to have in mind, because buying an off the plan property compared to buying an existing property has it's own differences and risks. With that in mind, we have compiled a list of pros and cons to really help you understand the process and what you might need to consider before venturing in this type of purchase.

The property hasn't been built yet

Pros

  • Purchase price discount

    • If you manage to get in early enough, particularly before construction begins, the developer may offer a discount on the purchase price;

  • Input into design

    • You might have the opportunity to negotiate changes to the exterior or interior style of the property, by checking out with the developer to find out what's possible;

  • Builder's guarantee

    • New properties usually come with a builder's guarantee. How the guarantee works and what it covers may be different depending on the state or territory where the property is located, so check this carefully to see if a guarantee is available and how it could protect you in future situations;

Cons

  • There's a change it won't meet your expectations

    • <p>When you buy off the plan, you don't get a change to 'walk through' the property before you buy it, so it might turn out differently than expected</p>

  • Possibility of construction delays

    • <p>If the building isn't completed on time, there may be increased costs or incovenience, such as if you need to continue renting until the property is ready.</p>

Ways to buy off plan

Options you might want to check

When choosing one of the following options it is important that you fully understand it's process, because every property will be different not only in looks but also in licences and timescales. In that sense, it is vital that you have a lawyer to check everything for you.

We have many clients that buy Off Plan and not always for the same reasons. Considering that, we have listed some of the many ways to buy Off Plan, to show you the reasoning behind why it is a very popular way to purchase property in today’s market.

In the historical centre of Lisbon at the moment there is a huge renovation project happening, many properties are from the 17th , 18th and early 19th century and in need of full renovation, many developers will start to sell the properties at the point of licence approval by the municipality, this means that although they haven’t started the renovation they have all the licences needed and have set out timescales to start and finish, because of the high demand the majority of properties for sale in the historical centre are purchased at this point, the big advantage for a buyer is that they get a property usually at a discounted price against the market value as they are buying something that isn’t ready, the main disadvantage is you need more imagination as the property isn’t finished.

This refers to properties that are newly built and have a project already approved, this means if it is a building then the number of apartments and sizes/layouts will have already been approved by the municipality and it’s a case of waiting for it to be finished, it can also be the same for individual or standalone properties, the advantage in particular with standalone properties is you can usually change the finishing’s to suit your taste, however the fundamentals of the project will have to remain.

This is the original way to buy off-plan, it is basically buying a piece of land and creating something between you and your architect, submitting it to the municipality and waiting for approvals, this way is obviously a lot more daunting as there are lots more factors involved, however, it is always the most rewarding both financially and mentally for the majority of clients that do it, although it does take a lot of vision and patience.

Rest assured we have the resources to help you every step of the way should you want to create your masterpiece.

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