The term ‘off-plan property’ refers to a property which is available for purchase before it has been completed. Buying an off-plan luxury property might be a turn-off for most investors because they tend to doubt the authenticity of the developers in terms of delivery and sizes of each housing unit. Although this is a normal feeling among investors because of the fear of failure that arises when investing in property.

However, this concern is often addressed by the fact that buyers can review the approved building plans for each housing unit before proceeding with any transaction with the developer or company in charge. Additionally, investors usually have the opportunity to verify or confirm housing measurements to ensure they align with their expectations.

This article focuses on;

1. - Understanding what an off-plan property is?

2. - Exploring the benefits of buying or investing in an off-plan property.

3. - The risks of buying or investing in an off-plan property.

Investing in off-plan properties means buying into a development before construction is completed, sometimes even before it begins. It’s a strategy that allows investors to get in early, often at a lower price, while positioning themselves for potential gains as the project comes to life. Rather than purchasing a completed building, buyers make their decisions based on architectural plans, 3D renderings, and the developer’s track record. This approach offers several advantages including the opportunity to secure properties at lower prices, enjoy flexible payment options, and benefit from potential capital appreciation once construction is completed.

Here are some advantages of buying an Off-Plan Property:

• - You can secure the property at a price below its eventual market value.

• - Great capital growth can be attained.

• - It gives the ability to resell the property at a profit.

• - It gives you an opportunity to buy the property with a minimal deposit.

• - It gives time to plan and save.

• - Gives investors peace of mind, taking the stress off during a building project.

• - Equity Growth.

• - You get the property brand new and fresh.

One of the common benefits of buying off-plan property is that you tend to buy below market value. Take, for instance, a finished four bedrooms detached duplex in Abraham Adesanya, Ajah which goes ₦70,000,000 on outright purchase, if off-plan, might be going for ₦50,000,000 and with flexible payment plans up to 18 months, with an initial deposit of 5% of the price for the duplex. Now you can see that you are buying below market value and by the time the property will be fully finished, it would have appreciated.

Another important point is that you have the opportunity to contribute your own input into things like interior decoration, kitchen finishing, bathroom tiles, and many more. In addition, you have the opportunity to know more about the materials used in constructing the building, unlike an already completed building that might have problems ranging from cracked walls to poor plumbing works to electrical installations.

Lastly, you have the opportunity to flip your investment even before completion.

However, one of the major risks is Trust on the part of the developer, the trust issues arise when potential investors find it difficult to believe in the reputability of the developer or real estate company and also on what the property would look like after completion. This why some developers develop a physical prototype for potential investors to see how the off-plan would look like. Another important risk is that the project may face delays. This problem might be attributed to funds in raising the projects. It is important to ensure that the project’s completion deadline is clearly stated in the contract. Potential investors should also take care to adhere strictly to the agreed payment terms with the developer.

In conclusion, buying an off-plan property is a good investment if you invest in areas where properties appreciate faster, you will have the opportunity to get a high return on investment. When it comes to location, Lagos remains one of the most promising areas for real estate investment, with demand for residential properties steadily on the rise. That’s why investing in off-plan projects with Albert & Wand offers a unique advantage.

We have a track record of delivering high-quality developments in some of Lagos’ most sought-after neighborhoods, we provide investors with secure and rewarding opportunities to own premium properties at the best value. Explore our ongoing off-plan projects and take advantage of the growth potential in Lagos’ thriving real estate market.

For more information please contact us on 0909 334 4443 or 0813 850 4934. Send an email to info@albertandwand.com

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