Being successful in estate business has to do with understanding what it takes to thrive in the sector. There are lots of people who go into the industry with the right motive but end up losing due to wrong application. Now that you’ve decided to get a building in Dubai, you will be making a big mistake by overlooking the two essential types of building property.
It is the same all over the world which is why you need to understand the two types before venturing into acquiring any house. The two models are off-plan or ready property. It has been a debate over the year as to which is the best among the two. Some developers choose to go with the notion that off-plan property is better and more advantageous than completed property and there are some other developers that negate the idea.
However, to give clarity and help anyone who is interested in buying a house, let’s take a good look at the two types of our focus on the pros and cons.
What is off plan property?
It is known as a landed property that is sold out as a house even when the structure hasn’t been in place. Does that sound so real t you? Buying a home which hasn’t been built, that’s precisely what off plan property is about. The developer pitch the property to you and you decide on either to get it or not after you must have put something’s into consideration.
Off plan, the property is a popular model in Dubai, and that shows why real estate agencies and developers such as Luxury Property have kept it in the forefront of their listing over the years.
Lower purchase price: for those with the desire to own a property but doesn’t have the capital to invest, and the off-plan property is the best option because they have the platform to get the property at a discount price from the developer.
Higher capital Appreciation: The other fantastic thing about investing in off-plan property is that it appreciates as development occurs in the location where you have the property, and that will lead to increase in the price of the property.
Flexible payment plan: Investors can pay the fee for off-plan for the duration assigned by developers. Almost all the developers in Dubai are making life bearable for those who have interest in acquiring property by allowing investors with less or no down payment, and also monthly that is affordable which can be spread out over some years based in agreement.
Lower upfront fee: You get to acquire the property you desire even if you don’t have the exact market value by paying a just little upfront fee.
It has no immediate return on the property: If you are the type that wants quick return or profit on the capital, the off plan isn’t an option for you because it takes time to yield.
You can’t move in or rent immediately: mind you, it is a building that hasn’t been built, so you can’t move into anything and neither can you rent it out.
Risk/market changes: the risk factor is that it the building might have poor finishes or have one issue due to the developer in charge of it. Concerning the market changes, the investor can run at a loss if no development comes into the location such as a mall, university, clinic and many more.
As the name implies, it merely means a building that is completed and ready for occupancy. There are many like that available in Dubai for rent and purchase. All that is to be done is to locate the one you want and make a deal with the estate companies in charge of the property.
You can invest in ready property as it has it’s good and bad which is why you need to look into it critically before making any decision. For those who need a house urgently, then the ready property is the best option.
It has an immediate return on investment: you can either rent it out, lease or sell at a higher price to the actual amount you bought it.
Fast occupancy: ready property is ready for use with no delay except if you choose not to move in yourself
Less risky: it is less risky because you pay for what you see. You must have done a lot of research and inspection before purchasing the house.
High price: Ready property doesn’t come too cheap, so you must be prepared to spend big
Must pay all front: it is different from off –plan that has a lower upfront fee. With ready property, you have to pay all the money before the building belongs to you.
In conclusion, any of the two types of property is good, but the choice all depends on investors with lots of factors contributing to one’s decision.