How To Avoid Off Plan Homes Buying Fiasco
Recently real estate investors have hit the headlines with the failure to fulfill their promises to prospective home buyers even after the buyers complete their payment for the various units spanning back from the year 2018. The question that begs is, how do you avoid such a Fiasco as an Off-Plan buyer? Here are the golden rules of investment in Off-Plan
Conduct due diligence
Carefully conduct the necessary due diligence on the credentials of all the involved parties i.e. the developer, the contractor and the management company in terms of their track record and retain if possible take time to visit their previously completed projects if any and get to know how they were conducted and whether the contracts were adhered to and laid down procedures and timelines.
Research the Market
It is also very prude for the prospective buyer to find out the amount of money that a similar property would sell or rent out for. Never rely on the developer for this information. Try to compare what exists in the market in terms of the complete project and compare it with the developer’s promise.
While most innocent buyers are not experts in both construction, legal or valuation matters but instead are investors with the zeal to own a place to call home, it’s very advisable that you involve all the relevant experts in the field to supply you with the necessary information for you to make an informed decision and in turn help you safeguard your hard-earned cash.
Pay Installments based on Milestone
After you are satisfied with the developer’s track record, you have done the market research, involved the experts and finally signed the contract to commence construction, always insist on paying your installments pegged to a milestone in the promised house unit. Just as mortgage providers do to ensure the money they give you is used for the intended purpose, as an investor you should as well follow this route to minimize the losses in case the developer breaches the contract.