Sunset Golf Villas are fast becoming the leading company for new developments and new construction for those buying villas off plan. We currently have a number of villas for sale including beautiful golf villas. If you are looking for villas for sale, buying villas off plan is not as strange as it may at first sound. ‘Off plan’ property purchase has become more and more popular over the years as investors look to maximise their returns. This method of buying has seen spectacular profits for many purchasers. Basically, buying villas off plan means just that. You reserve a property on a new development before the new construction is completed, it can often be before it has even started and in some cases even before the developer has been granted the licence to build. There are many advantages of this practice for the vendor and the purchaser
One benefit to the purchaser is that because you are being asked to buy an architect’s drawing and an empty plot of land instead of a ready building, the prices are accordingly lower. On occasions, you can also have some say in how the new property is constructed and the fittings used. As the new construction begins and the development begins to take shape and a show home is completed, the prices will increase substantially as other prospective purchasers with less imagination can actually see what the homes will look like. Once the development is finished, other purchasers will be willing to pay more for the finished product decorated with gardens and pool rather than an empty plot of cement and rubble and a drawing.
Another benefit of buying off plan is that the purchaser has the first choice of individual properties on a new development. Normally when a development is sold, the penthouses, corner units and ground floor apartments with private gardens are the first to go.
It is normal practice to only have to pay approximately 30 per cent of the purchase price as a deposit and the balance should not be required until construction is completed. The balance can then either be financed by a 70 per cent mortgage or you can take advantage of the fact that this process can take from several months to several years giving you time to increase your savings.
An additional bonus is that if you sell the property on before it is completed and you have taken on the title deeds, then there is no Capital Gains Tax to be paid no matter how large a profit you make.
The purchaser is not the only one to benefit from this type of transaction. At the time of the pre-construction the developer of the property is eager to sell as many units as possible to minimise his overall risk. The more units sold also helps negotiate lower interest rates from their investors, which is why the properties are priced extremely competitively at this early stage.
As with everything there are some risks involved for a purchaser in acquiring a property which he cannot inspect, the main one being that the purchaser cannot see what the property looks like, the standard of finishes, the practical layout, the size and dimensions or the view or the outlook. These problems can only partially be overcome by viewing a demonstration unit, video presentations and sample finishes. To develop an understanding of such issues requires in-depth research and a healthy scepticism; never buy an off plan property on a whim!
Every effort should be taken to understand the issues which will arise during the construction of the development; including the style, appearance and finish of common areas, likely noise, proposed security system, visitor parking, access to garages, ventilation, garbage disposal and landscaping.
Usually, the developer will have an on-site display office, so drop in and look over the sketches showing how the apartment/townhouse will look once completed both on the inside and outside and how this unit will fit into the overall development. Also, inspect any samples of the materials to be used in the construction and find out your options with regards to materials, fittings, unit layout and overall size. Another good idea is to inspect the developer’s previous work. Ask for the address of several of the developer’s other projects and where possible, arrange to inspect these.