Off-plan property vs. ready property – Buy Properties in Dubai
Investing in off-plan property or ready property in the secondary market each have pros and cons. Each individual’s financial situation and risk appetite is unique, and as such, it is important to adequately assess the risks associated with both.
Pros of buying off-plan
- Price: Buyers commonly receive a price advantage with under-construction properties priced significantly less than ready properties.
- Capital appreciation: There is a high probability of the property increasing in value near to completion and handover.
- Smaller down-payments: Initial deposits of 5-10%, as opposed to 25% with ready properties, can make purchase more achievable.
- Payment plans: Developers offer highly attractive, flexible payment plans, in some cases offering post-handover 2-5 year payment plans meaning you can actually rent the property out before commencing the repayments.
Cons of buying off-plan – Buy Properties in Dubai
- Changes in market conditions: Downward movement in prices may result in the property being valued at less than the initial purchase price.
- Delays or cancellation: There is of course the risk of projects being cancelled, or completed after their scheduled date. To mitigate this, it’s vital to conduct independent research on the developer to verify their track record and reputation.
Pros of buying ready property
- Price: Price advantages may arise relevant to market conditions at the time. In a buyers market, it might be possible to buy a property at a significant discount. At the moment, as the market continues to correct itself and new supply enters the market causing prices to dip, buyers have the ability to bargain.
- Location: Ready property is often in prime locations with completed infrastructure in place.
- Immediate returns: You can start earning rental income from the moment a tenant is found.
- Stable rental yields: Investing in ready property often provides the added benefit of proven rental yields.
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