With the demand for real estate in Lagos at an all time high due to the increasing housing deficit, developers are adopting several strategies to provide affordable properties.
Selling off-the-plan properties is one of these techniques. Off-plan investing, while not a new type of real estate investment, has exploded in popularity in recent years as investors see it as a viable method to diversify their portfolio.
While both residential and commercial real estate can be bought off plan, it is more common in residential real estate.
So, what precisely is off-plan development, what are the advantages and disadvantages, and how can an off-plan investment strategy be made safe? In today’s post, we’ll answer all of those questions.
DEFINITION OF OFF-PLAN
The term ‘off-plan property’ refers to property, which is available for purchase before it has been fully constructed or when it is still in the planning phases. To put it another way, you acquire a property while it is still an architectural drawing or on its way to being completed (for example its foundation has been constructed or the first deck has been raised).
BENEFITS OF OFF PLAN
Off-plan investing, like any other type of real estate investment, has a number of advantages. The following are the major advantages:
RISKS ATTACHED TO BUYING OFF-PLAN PROPERTIES
However, off plan investing also come with their own risks. Some of the risks involved include.
HOW TO REDUCE THE RISKS
The good news is most of these risks can be lessened quite easily. To minimalize or even eliminate the risks, here are a few things you can do.
In our next post, we’ll discuss two methods for profiting from off-plan investments.
Till then, If you’re interested in purchasing real estate in Lagos, please contact us by clicking on the floating whatsapp or phone call button in the lower corners of your screen.