OFF PLAN PROPERTY product and depend on the developer to deliver according to plan . You are essentially buying the developer ’ s dream .
You ’ ll have to wait a few years for development to complete , making it a few years before a buy-to-let property can begin generating income to cover the price you paid for it .
The developer might go bust during the construction , in which case you ’ ll have to hope that the liquidator can pass the contract over to another developer . In the event that a buyer is contractually obligated to take occupation before transfer happens , they will be liable to pay occupational rent to the developer – regardless of whether they actually move in - so make sure this budgeted for
Check points before you buy offplan It is essential to do a thorough background check on your developer . Ideally , your developer should have a solid track-record of successful developments that continue to appreciate well ,” says David Jacobs . “ This is a good indication that their build quality is high , and that their designs hold value .”
Visit the developer ’ s previous projects and chatting to past investors if possible and check online reviews .
Ask about their purchase experience , any project delays , any discrepancies between marketing material and reality , and how good their after sales service was , if it was necessary .
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SA Real Estate Investor Magazine APRIL / MAY 2023 52