Off-plan versus ready property: which one is perfect for you?
Property analysts predict that there will be an increase in the number of property buyers in Dubai this year because of higher affordability. Individuals who were hesitant about buying their own homes during the past couple of years are now looking into real estate investment. If you are among these interested customers, you might be having difficulty deciding between buying an off-plan property or a ready one.
An off-plan property refers to a building that is not completed yet. Once you decide to purchase it, you can make staggered payments until your unit is fully built and available. On the other hand, a ready property is a house that is ready for occupancy. Since it is already established, you may have to pay it in full.
To help you find the best property investment in Dubai, here are four crucial considerations to keep in mind before making a decision.
4 Things to consider
1. The risk involved
Like any other investment, there are risks involved when buying off-plan properties, considering the fact that you are basing your decision solely on photos, brochures, and 3D videos. To help lessen or manage these risks, it is important to choose the right real estate developer.
By working with a leading, reputable developer, you can rest assured that they will have the right knowledge and resources to serve your needs, the capabilities to meet agreed timelines and the proven systems, manpower and capacities for reliable, quality delivery.
Choose one with an excellent track record of local expertise, and a global mindset that ensures your investment will yield a positive ROI. Check how the company has dealt with its clients by reading customer feedback on their website or asking their previous clients about their first-hand experience with the developer.
The same goes for buying ready properties. Look diligently into how the place was constructed, from what materials were used, to who built it. Nothing is more reassuring than knowing that your home was built by the best developer using only the highest standard materials.
In Dubai, DAMAC Properties is a property developer you can trust. They have been in the real estate industry for two decades, delivering excellent commercial, residential, and leisure properties for sale in the Middle East and beyond. They are committed to making sure even the smallest details are carefully considered to provide you with a home that suits your needs and budget.
The property’s price is another important consideration.
Off-plan properties are often priced less than ready homes because they are still under construction. Developers can just require a 20% down payment or less, with the outstanding balance to be paid upon the completion of the property or in instalments. Also, you can get discounts and several off-plan incentives, rent-free stays, and flexible payment plans even after the property is handed to you. These offers make off-plan properties more attractive to buyers.
But this does not necessarily mean that ready properties are hard on your pocket. DAMAC offer ready apartments for sale in Dubai Marina and other areas with a flexible payment plan. You don’t have to wait months or even years to reside in the property you want – you can move in immediately and not worry about shelling out a considerable amount of money or taking out a loan.
If your intention for buying a piece of property is to rent it out or sell it, off-plan properties are a better option. You can generate higher profits if these apartments are rented out or sold in areas where there is a high demand for real estate. You can also sell the property even before it is fully built, thus providing you with a huge margin of profit.
Furthermore, you will have a favourable investment with an off-plan property because its market value will certainly increase upon completion. And because of this capital appreciation, the property can be sold at a higher price.
If you are buying a property for you and your family to enjoy for years to come, modifiability is a crucial consideration.
Most properties, whether ready or off-plan, usually have everything in place already, which includes amenities and facilities that can hasten daily home tasks. It’s important to keep in mind if the property will meet your needs now and in the future. Perhaps there is the capacity to extend, so make sure you check if you need permission from the developer and if there are any costs involved, such as an NOC (no Objection Certifcate) and so on.
Each real estate investment option has its pros and cons; determining what type of buyer you are is a huge help in selecting the kind of property to invest in. If, for instance, you need a place to live now, you will have to buy a ready property. But if you are thinking of putting the house for lease or sale, an off-plan property can provide you with a higher profit.
Likewise, you have to consider these four crucial factors – the considerable risks involved, affordability, profitability, and modifiability. From there, decide which option suits you best at this moment. And most importantly, make sure that the best property developer built the property you’ll buy.
Get in touch with us at DAMAC Properties today to discuss potential options that will suit your needs.