Property lawyers will tell you that buying property off the plan means you are putting down a deposit for a property that is not yet built. This happens most often when a property developer buys a big acreage of land that he intends to subdivide into smaller blocks and build homes on, then sell. To get the money for that, he advertises the plans, which allows prospective buyers to choose one of many blocks in an area they like.
There are pros and cons of buying off the plan that should be carefully considered before going ahead.
There are several advantages for this type of purchase.
- You only have to pay a deposit to start with and no more until the home is built.
- This allows you to put off getting a loan if the interest is high, but you think it might fall in the next few years.
- It may allow you to save up more so you don’t have to get loan, or can get a smaller one, thus saving some costs.
- You may get to have a say in which finishes are used for your home, since you are the buyer.
- It can allow you plenty of time to sell your own home, or to become more stable financially.