Off-plan or ready made

[dave99]

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Off-Plan - or Ready Made property ?
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Why would anyone take the risk of buying off plan when they can buy something that is just about complete ??

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[mtrtnik]

I as investor like off-plan a lof. I put only fixed ammount of money and not everything and until prices will rise I think this is best solution for making money. If you pay only 50% for example and price goes up for 5% you are actually getting 10% rise. It's almost you'd be using leverage on stock market Of course from view of holidays I'd prefer ready made property. Also I think until prices will rise at current stage it won't be possible to make more money with renting property than reselling.

[realestatemart]

I think it depends on you and yourpoint of view of purchasing?
Are you purchasing for Investment? are you purchasing for only holiday home?
Also it depends do you have the sufficcient budget to buy the property? or you need the payment to be done through parts and instalments??
many things you have to think about it then you can decide?
Regards

[Lsab]

For us, because we're investing rather than planning on living there, it's always off-plan. I suppose there could be a risk buying this way but a minimal one if you do your research. We chose off plan because the stage payments suit us and because we hope to see a good capital return on our investment once the development is finished. I read somewhere, maybe on this site, that Europeans/Scandinavians generally prefer to buy a completed property so that those of us who buy off plan, might have a ready market when we come to sell. I know that we Brits are failrly new to Hurghada but it's my understanding that Europeans etc have been buying there for a while. We're not banking on them to buy when we're ready to sell but it's an extra point to add to the exit strategy list!

[dave99]

Originally Posted by lsab

For us, because we're investing rather than planning on living there, it's always off-plan. I suppose there could be a risk buying this way but a minimal one if you do your research. We chose off plan because the stage payments suit us and because we hope to see a good capital return on our investment once the development is finished. I read somewhere, maybe on this site, that Europeans/Scandinavians generally prefer to buy a completed property so that those of us who buy off plan, might have a ready market when we come to sell. I know that we Brits are failrly new to Hurghada but it's my understanding that Europeans etc have been buying there for a while. We're not banking on them to buy when we're ready to sell but it's an extra point to add to the exit strategy list!

How long between buying and finishing is an acceptable risk period.

6 months - 1 year 2 years - longer ??

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[Lsab]

I wouldn't want to go much longer than 2 years. Having said that the studio we're buying in Dubai is over a year overdue. We're only not worried as it's happening to lots of others and they're all gradually getting keys. We've lost out on a years rental but on the plus side, we've seen excellent capital appreciation. In the end we're at the mercy of the developer as we're the ones that lose out if we pull out. It hasn't put us off buying off plan though - we've just learned more!

[queenie40something]

When we 1st looked into buying at Sharm we wanted something that was ready or a re sale property.
The problem we found was that the prices were that much higher so we decided to purchase off plan.
We bought in late October last year and the apartment should be ready at the end of this month so we have not had very long to wait.
The whole developement is scheduled to be finished around October time.

[lyndsay552]

The properties we bought where a complete mixture.

Regency Towers was only a few months from completion and it was great to be able to go into the apartment before making a decision. Not sure how much cheaper the apartment would have been if we had bought it off plan. But its great to know that we will be able to use it within an few months. It also means a shorter time until it is making money for us.

The second was Oasis Resort, which was 9 months from completion but again we could go into the apartment. We missed out on the big discounts but negotiated our own discount.

The third was off plan and as such got good discount.

So there are definately advantages to each way of purchasing your apartment. It just depends on your own situation.

[dave99]

Originally Posted by lyndsay552

The properties we bought where a complete mixture.

Regency Towers was only a few months from completion and it was great to be able to go into the apartment before making a decision. Not sure how much cheaper the apartment would have been if we had bought it off plan. But its great to know that we will be able to use it within an few months. It also means a shorter time until it is making money for us.

The second was Oasis Resort, which was 9 months from completion but again we could go into the apartment. We missed out on the big discounts but negotiated our own discount.

The third was off plan and as such got good discount.

So there are definately advantages to each way of purchasing your apartment. It just depends on your own situation.

Wow - you've bought three already.

I assume that you have them in different names to avoid the legal stuff.
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I suppose you could not beleive how cheap there are !!!.

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[realestatemart]

Originally Posted by lyndsay552

The properties we bought where a complete mixture.

Regency Towers was only a few months from completion and it was great to be able to go into the apartment before making a decision. Not sure how much cheaper the apartment would have been if we had bought it off plan. But its great to know that we will be able to use it within an few months. It also means a shorter time until it is making money for us.

The second was Oasis Resort, which was 9 months from completion but again we could go into the apartment. We missed out on the big discounts but negotiated our own discount.

The third was off plan and as such got good discount.

So there are definately advantages to each way of purchasing your apartment. It just depends on your own situation.

You was so clever Lyndsay in your choice