Top Tips For Buying An Overseas Property Off Plan
- Date: 2007-03-31 - Word Count: 403
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Buying off-plan is a very popular way of purchasing overseas property these days. As the name suggests, this involves making a commitment to buy a property that has yet to be built. Selling off-plan reduces the investment required to get a project started. This advantage is passed on to the buyer as a discounted price, often significantly below the market value of a similar completed property. The buyer also benefits from any increase in property values during the building period, which can be significant.
The decision to buy off-plan is based on information provided by the developer or estate agent. This should include details of the location; a site and floor plan; information about the materials to be used, communal facilities and prices. There should also be a construction and payment schedule. Carefully compare the details with other developments. Some companies include balconies, and even internal walls, when calculating the size of a property, so clarify this before making comparisons. It's also a good idea to visit the site to check the surroundings.
The buyer then secures a property by paying a reservation fee, typically £500-£2,500, and signing a contract. Do not hand over any money without having a contract in place. As with any contract, it is wise to have an independent solicitor check the document before signing. They will also check that the developer has authority to build on the land and that all the building permissions are in place. You should also check the service charges when the property is completed.
Payment is usually in installments and may be due on dates specified in the contract. Alternatively, payments may be linked to the building process. This gives the buyer security, allowing them to withhold payment if work has not been completed. It is a good idea to personally inspect the property before releasing the final payment. As an incentive to get the job done on time some developers include a penalty clause, with payments made to the purchaser if completion is delayed. By law in some countries construction companies must give a guarantee on materials.
You should opt for a developer who has completed several similar developments, and, if possible, visit one of them for a look around. You can also ask the developer for references from previous clients and check whether they are registered with the local chamber of commerce.
Dominic Whiting is a journalist and publisher of the Buying in Property Guides www.buyinginguides.info
The decision to buy off-plan is based on information provided by the developer or estate agent. This should include details of the location; a site and floor plan; information about the materials to be used, communal facilities and prices. There should also be a construction and payment schedule. Carefully compare the details with other developments. Some companies include balconies, and even internal walls, when calculating the size of a property, so clarify this before making comparisons. It's also a good idea to visit the site to check the surroundings.
The buyer then secures a property by paying a reservation fee, typically £500-£2,500, and signing a contract. Do not hand over any money without having a contract in place. As with any contract, it is wise to have an independent solicitor check the document before signing. They will also check that the developer has authority to build on the land and that all the building permissions are in place. You should also check the service charges when the property is completed.
Payment is usually in installments and may be due on dates specified in the contract. Alternatively, payments may be linked to the building process. This gives the buyer security, allowing them to withhold payment if work has not been completed. It is a good idea to personally inspect the property before releasing the final payment. As an incentive to get the job done on time some developers include a penalty clause, with payments made to the purchaser if completion is delayed. By law in some countries construction companies must give a guarantee on materials.
You should opt for a developer who has completed several similar developments, and, if possible, visit one of them for a look around. You can also ask the developer for references from previous clients and check whether they are registered with the local chamber of commerce.
Dominic Whiting is a journalist and publisher of the Buying in Property Guides www.buyinginguides.info
Related Tags: property, investment, real estate, invest, overseas, buying, foreign, off plan
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