Firstly, what does it mean to property off-plan? In simple terms, ‘buying off plan’ means committing to purchasing a property before it has been completely built. This invariably means making a financial commitment before any building commences.
Usually, the developer will be present his ideas, via 3d drawings and thanks to technology a number a visual interpretations can be shown to you as well.
The attraction to off plan investing is that developer would usually offer the project at a much cheaper rate than when the project is completed. This will lead in savings of millions of naira.
However, it is without question that there ARE several worries to this effect. I also know of a number of people who have been involved in ghastly stories. People who committed financially, by being sold the ‘Nigerian dream’ and then ended up with totally different projects from what they signed up to.
On the other hand, there are success stories. A lot of success stories that have resulted in investors gaining instant returns on their investments, and completion of projects have been done in very good time.
So is off plan property investment a good idea? YES! It is a great idea and a fantastic way of investing wisely in the real estate market. But before you make that decision. Here are a few important factors to consider:
1. Use a good property agent: A good property agent is best equipped to know the best off plan deals and would have good relationships with credible developers. There are so many realtors out there but i will personally recommend WREN REGENT PROPERTY LIMITED because of their numerous experience.
2. The developer’s portfolio and reputation: I know it is important to give everyone a chance, but real estate investing usually requires a huge sum of money. Therefore, I usually recommend going with a developer that has a good building history. See and inspect at least 2 projects by the developer and assess whether the quality of build resonates with your standards.
3. Study the layout carefully: Ensure that you fully understand the product you are getting. Understand the size of the rooms, see where the corridors are and understand the positioning of the spaces as well. It is at this point that you should choose your unit if you are investing in a multiple unit project e.g. a block of flats or a strip of terraces. I always advice my clients to go for the corner unit! It’s always bigger and guarantees privacy.
4. Understand the project timelines: realistic, measurable and achievable timelines form the foundation of a good off-property investment. Ensure that you understand the timeliness and the established date of completion.
5. Get a lawyer and perform due diligence: Performing your due diligence is required in any type of property investment. Request for all necessary documentation pertaining to your desired investment opportunity.