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Buying Off-Plan Guide

A Guide to buying Off-Plan Property .

What is Off-Plan and Why Buy Off-Plan Property?
Investing in property off-plan (i.e. before it's even built) is becoming a reliable way of maximizing the investment opportunity. By working directly with developers, you can often gain early access to property investment opportunities long before they have been released to other investors. Property is the only proven method of wealth creation that always delivers time and time again. Whether you are looking to secure an additional source of income, to make quick profits, provide security for your pension or build a substantial property portfolio. In the New Cairo Compounds you can and you can get The lifestyle you deserve ...

The key to investing in international property is to get in at ground level in areas set to boom, thereby allowing maximum capital growth and investment return.

The New Cairo Compounds is the latest area for investor focus. Prices in comparison to other markets are unbelievably low. This is the next boom area of the property investment market, although this is already changing and now is the time to take advantage of this opportunity. The superb climate and rapidly appreciating property potential make it the place to put your money today for a great investment tomorrow!


When is a good time to purchase property?

If prices are increasing - YES
If prices are static - YES
If prices are decreasing - YES



What is buying Off Plan?

Off Plan purchases have provided spectacular returns for thousands of investors across different parts of the world over recent years. Clients are most suited to an Off Plan property investment when their main priority is return on invested capital, or when they are interested in buying a property for their own use and do not need to occupy the property immediately.

Buying Off Plan simply means reserving a property on a new development before the property is completed, often before construction has started. Working from the architects plans.

The developer is obviously very keen to sell as many properties as early as possible to reduce their exposure and to obtain favorable development loans from banks and investors.



Competitive Prices


To help speed up the sale of properties at this early stage prices are normally extremely competitive as the developer has little to show potential purchasers, except architects' plan and artists' impressions of the development. In some cases show apartments may also be available which generally give a good indication of the standard to be expected in the finished product.



What are the reasons for buying off-plan?


The essential reasons that make buying Off Plan such a good investment are the timing of payments, and the fact that developers are prepared to price below market value before the completion of construction. This will give you instant equity.

In this way an investor is benefiting from appreciation on the full value of his property during the period of greatest growth, while outlaying only a fraction of the price.


For example:

Purchase Price: 100,000 euros (Jan 2005)
Deposit payable: 30,000 euros payments in installments
Let us assume that you sell the property in June 2006 just before completion and that you sell for 150,000 euros.

Your profit is 50,000 euros which is obviously a 50% return on the 100,000 euro asking price. However, since you have only had to pay 75,000 euros in deposits