The process of buying a home off-the-plan may take approximately six months. The average person takes around four and a half months to look around and find the perfect property, and an additional 30-45 days to close when under contract.
This, of course, will change depending on a variety of factors including your financing needs, the inventory in the market, what you look for in a property, the time of year, and the current climate of the property market.
Buying a property is a significant milestone in many people’s lives and one of, if not the largest financial purchases a person may make in their life. It only makes sense then that this process should take time and be dealt with patiently.
What does “buying off-the-plan” mean?
Buying “off-the-plan” means entering into a contract to purchase a property that is still being built, or purchasing even before the process of building has begun. This term applies to all properties including apartments, townhouses, houses, and vacant land.
This idea may be daunting as your potential home is not physically realised. But, you are able to base your decision around floor plans, design schemes, and expertly-made renders.
The image above is a render created to show what the finished product of an apartment at Yves will look like. You may not have the finished product now, but high-quality renders like this can help you envision your future home.
Steps to buying off-the-plan
The typical process of buying a property off-the-plan involves searching and finding the right property, purchasing said property, and then waiting for your chosen development be completed.
These steps may take up time, thus, lengthening the overall time it takes for you to purchase your home. But what are the steps to buying off-the-plan?
The first step is to look for the perfect property. Depending on your criteria, location, and the inventory in your desired location, this may not be as easy or quick as you expect. As aforementioned, it takes the average individual four and a half months to find the right home.
When you have found a property you love after reviewing its floor plans, design schemes, and renders, you will receive a contract. In the contract will be an outline of your deposit and payment, information on the property and exactly what you are buying, your obligations regarding the purchase and payment, and the developer’s obligations to you. Before signing, make sure you have your solicitor review it with you and answer any questions you may have.
Once signed, you will need to pay your deposit in order to secure your property. Typically, your deposit is stored in a trust account until the property development is complete.
The great thing about off-the-plan properties is the time it gives you to continue to save for your new home. The construction time for your property will vary. But, when it comes to building an apartment development, which involves construction of an entire building and multiple units, it can usually take between two to five years to complete.
During this time, you should receive updates of construction, milestones, and even photographs along with these progress updates. You will also receive estimated settlement dates towards the end of the construction process. It is a good idea to have your finances sorted by this date.
When construction is finished, you will go through the settlement process where your home will be inspected not only by you, but also by a third party to make sure it obeys the building’s regulations and its safety standards are up to par.
It is also at this stage that you pay the remaining balance of your deposit, which is why you should have your finances sorted by this time. After the money is transferred and your contract is settled, the property is finally yours.
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Header image source.