Buying off-plan can offer more choice, the possibility of buying at an early-stage price and the enjoyment of watching a new home take shape. But it also means committing to something you cannot yet see or experience. We look at the advantages, the uncertainties and whether buying off-plan is right for you.
It is your choice
Buying a property off-plan can be exciting. You are choosing a home before it exists, often at an early stage of a project, and watching it take shape over the following months or years.
For some buyers, that is part of the attraction. For others, it would be their idea of a nightmare.
Neither reaction is wrong.
One of the traditional attractions of buying off-plan has been the possibility of getting in early. A developer needs early buyers, and historically those prepared to commit at the beginning of a project have sometimes been able to buy at a lower price than somebody purchasing a similar property when construction is well advanced or nearing completion.
If property prices rise during the construction period, the early buyer may therefore find that by the time the keys are handed over, the completed property is worth more than the price originally agreed.
Over the years, we have seen buyers do very well this way. We have also seen people buy off-plan with the intention of selling before completion and make money from doing so.
But we have been around long enough to know that it would be wrong to suggest that this is guaranteed.
There is always an element of risk
Property markets change. Construction can take longer than expected. Circumstances can change during the time between signing a contract and eventually receiving the keys.
And sometimes the finished property or community simply doesn't live up to what somebody imagined when they bought it.
We have seen buyers delighted with the eventual result. We have also seen buyers disappointed.
With a properly researched project, an established developer and the appropriate legal safeguards, some of the risks can be reduced considerably. But buying something that doesn't yet exist can never be quite the same as buying a completed home that you can see and inspect.
This is also why independent legal advice is important. Your lawyer should check the contracts, planning and licensing position, payment arrangements and the safeguards applying to the money you pay during construction.
Can you visualise what you're actually buying?
For me, this is one of the most important questions, and it has nothing to do with whether property prices are going up or down.
Some people are very good at looking at a floor plan and understanding exactly what the finished property will feel like.
Others aren't.
Computer-generated images have become extraordinarily good. Increasingly, AI-generated imagery can make an unbuilt property look completely convincing too.
These images are useful. They can help you understand the proposed architecture, finishes and general appearance of a property. But they are still illustrations of something that doesn't yet exist.
A beautifully furnished image can also influence how we perceive the size of a room.
Look at the dimensions. Look at the usable floor area. Think about the furniture you actually own and how you would use the space.
A computer-generated sofa always fits perfectly.
Yours might not.
You can't stand in front of the window
There are other things that are difficult to judge from plans and images.
You can't walk into the living room and see how the proportions feel. You can't stand at a bedroom window and experience the outlook. You can't hear the surrounding area or see exactly how neighbouring buildings relate to the property.
A good sales office, plans, models, specifications and visualisations can provide a great deal of information. But they cannot completely reproduce the experience of standing inside the finished home.
For some buyers, that doesn't matter very much.
They are comfortable making decisions from plans. They enjoy choosing finishes, following the construction and watching something gradually become their home.
For other people, it matters enormously. They need to walk through the front door, look around the rooms and know exactly what they are buying.
If you are one of those people, buying off-plan may simply not suit you.
Buying early can also mean having more choice
There is another advantage to getting involved early which is sometimes more important than price.
You may have a wider choice of properties.
Depending on the project, that could mean choosing between different floors, orientations, positions within the community or layouts before other buyers have reserved them.
There may also be choices over finishes and specifications, although exactly what can be changed will depend on the project and how far construction has progressed.
By the time a project is nearly finished, much of that choice may have disappeared.
On the other hand, waiting has an obvious advantage too. You are making your decision with considerably more information.
Think about the timescale as well as the property
If you need a home within the next few months, a property scheduled for completion in two years probably isn't the answer.
If you are planning further ahead, the timescale may suit you perfectly.
But anticipated completion dates should be treated realistically. Construction is complicated and delays can happen.
That doesn't necessarily mean anything is wrong with a project. It simply means that somebody buying off-plan should have enough flexibility in their plans to cope if completion doesn't happen exactly when originally expected.
So, is buying off-plan a good idea?
It can be.
Buying early can offer greater choice, the enjoyment of seeing a new home take shape and potentially a financial advantage if you buy at an attractive price and the market subsequently moves in your favour.
But none of those things should be treated as guaranteed.
More importantly, buying off-plan requires a particular type of buyer. You need to be comfortable committing to something you cannot yet walk into and accepting a degree of uncertainty while it is being built.
Some people love that.
Others would be much happier buying a completed property where they can open the front door, stand in every room and decide whether it feels right.
The important question isn't really whether buying off-plan is good or bad.
It is whether buying off-plan is right for you.
For help making the right decision, you can always give us a call on (0034) 952 90 52 00, WhatsApp us, or email info@michael-moon.com. We look forward to hearing from you.
