Ready to move VS Off-plan Property – Which to go for?

 

In the most aspects of life, we tend to prefer a complete property rather that is ready-to-move and we can see and feel all the aspects of it.

Instant gratification ranks are very high to most people priority list, which conclude us to the main reason why most people prefer a ready property than an off-plan one. They prefer the ones that allow them to move immediately with a clear idea of what will be delivered to them.

But let’s look on the other side of this, an off-plan property allows you to have your dream unit with the lowest market value comparing to what you will end up paying when it is ready.

You will be able to monitor the full construction process for you to implement your own ideas, taste and dream plan into the unit you are choosing.

In addition, to the raise of market value and profit once the construction is done and the unit is ready to be delivered a direct profit income and value raise will be added to your property.

Off-plan Properties:

Pros:

• Cheaper:  Buying an off-plan property can be cheaper compared to buying one that is already built and ready to be delivered.
• Low EMIs – EMIs are paid as the work progresses. Therefore, initial EMIs are low in case of an off-plan Property, However most banks in UAE are only offering mortgages to well – know developers for an off-plan property.
• Win-win situation for buyers and sellers – Buying an Off plan Property is a win-win situation for both buyer and seller as the seller gets a ready customer even before laying the foundation while the buyer gets the lower price comparing to what the property will be worth in future after the construction is completed.
• High returns – Since the price paid is less, the buyer gets a higher profit from his property. This kind of advantage is not possible in the case of a ready-to-move home. However, high returns come with high risks.

CONS:

• High risk – it is not a green grass all the way with an off-plan property though. There have been cases where builders could not complete the housing complex resulting in buyers losing their money because of cash crunch, high-interest rates, or high raw material costs. However now with new regulations, things have changed, now there are a lot of highly trusted developers who built their names over the year and their reputation is solid in the market.In addition, to the fact that the developer is obliged to return the money back to the buyer incase of any delays or if the construction has stopped for any reason the deposit is returned back to the buyer as agreed. Hence, the track record of a builder is paramount (key Factor)
• Market outlook may change over time – On the other hand, the market outlook may also change due to the crisis or a drop of financial status.
• Sometimes you don’t get what you are promised – This is another common complaint home buyers have. They usually do not get what is promised to them in the agreement.

Ready to Move Properties:

Pros:

• Immediate availability – the fact that the buyer doesn’t have to wait. He just chooses the unit he desires and get the needed documents prepared. Then moves his belongings to the new dream house.
• You get what you see – in ready – to – move properties you get what you actually have seen and chosen upon. Since it is ready and there is no surprise element in any stage and there are people living there, getting feedback about the area, maintenance, locality, shopping centers, and utility centers become easy.

Cons:

• Well constructed? The most important questions that pops into mind that is ready – to – move unit well maintained and constructed as the shabby foundations and finishing can make this dream unit an old and undesired place to be in. changing this dream property into a living nightmare and lose of investment.
• Expensive – the price of any ready – to move property is higher than the off- plan ones. Taking into consideration that the units are ready to move, preferred and coping with the new up to date market prices in the desired area.