Be wary when buying a home Off-Plan

Be wary when buying a home Off-Plan

Buying a new home before a brick has even been laid is becoming increasingly popular here in the south. This is due to new development popping up in sought after location and then rise in need for housing. To many buying a new build home is very appealing but remember to be wary as you are buying a property you haven’t even seen yet.

There are many advantages to buying off-plan, you are able to choose your plot and extra options such as garages and fixtures and fittings. This rise in popularity may have come hand in hand with the first stage of the Help to Buy scheme where you are able to put down as little as a 5% deposit and obtain a 75% mortgage with the government lending the other 20%, enabling many people to get on the property ladder or move home.

Another benefit to buying off-plan is you agree a price at the start, in the current housing market with property prices increasing you may have already made thousands on your house before you even move in. There are also all the usual benefits of buying a new build home, the good economy and new systems throughout the house, no need for any work or maintenance and ready to move straight into. 

 

However it is possible it could be a very different story, for example if property prices were falling the buyer could lose out before the house is even built. This could lead to issues obtaining a mortgage or having to pay a larger sum to make up the difference as the lender will look at the current value and the developer will want the price agreed at the outset. There is also the aspect of the property not being built in time, and therefore the mortgage offer expiring and having to go through the process again.

Also the property may be different from what you imagined when looking at the initial plans. You don’t know who your neighbours will be and views and noises may not be what you expected. There is also the chance that the developer could go bust before completing the development.

Have any of you bought off-plan? What are your experiences?