Buying off plan or pre-construction can be highly rewarding financially. We have many clients who re-invest with us as soon as a new development comes on our books, the reason being, a new development will a have a number of price increases during its construction.
The first is when the company receives their building licence and can start to build; they usually increase the price by 5% at this stage. When the main structure is up they usually increase by 10% and when the project is in its final stages with gardens, pool and cleaning started they may increase again by another 10%.
Investors who are familiar with this process can use their money to gain a handsome profit. They can reserve one or more apartments off plan before the building licence has been granted. They usually have to put down 30% of the total purchase price during the construction. The remaining 70% will be paid by mortgage, but the investor may well resell the property prior to completion to take their rewards.