Is buying an off-plan apartment worth it?

The dream of having a corner to call your own is part of the lives of many. And at these times, having a financial plan makes all the difference. According to the ZAP real estate group, buying off-plan is good, especially for those who are just starting out in their financial lives.

Basically, by buying off-plan you are helping to finance the construction of the building. This occurs with the vast majority of properties, where a third of the value is financed for the construction period, which lasts an average of 3 years. For example, if the apartment costs R$450,000, R$150,000 is paid as a down payment and the rest is paid only after handing over the keys.

The down payment, which would be your investment in the building, can be paid monthly, with intermediary fees, and a final fee upon delivery. However, adjustments may occur due to variations in labor, unforeseen events and prices of construction materials. Thus, in the end the value will always be greater than the initial one.

But is buying off-site really cheaper?

According to economists from the ZAP real estate group, there is no account that allows you to compare the price of the plan with the finished apartment. Therefore, it may or may not be a good investment, depending on how much input you have to make and also how the market is.

For example, in times of crisis in this sector it is easy to find prices below average for buildings less than 10 years old, which is a great advantage. Another factor is people who are unable to pay the installments for newly opened apartments and end up selling for lower prices than the initial price.

Finally, check out the advantages and disadvantages of buying an off-plan apartment and see which is the best deal for you!

Advantages of buying off-plan

Most affordable price

This is the main attraction of this type of investment. After all, the costs of properties that are under construction are much lower than those that are ready. And as you can pay the amount in installments over the construction period, the installments are much easier to pay.

Installments

Ease of payment and negotiation flexibility is another point that attracts many buyers. With more comfortable and affordable installments, for those who don’t have a lot of money, it makes the dream of owning a home more tangible. And the financing can also be adjusted according to what is desired, being able to choose the down payment amounts and how many installments will remain after the work.

Build your dream apartment

In addition to being the first resident, you can make changes such as changing the location of walls, doors, windows. Also details, such as finishes, tiles and coverings. Everything according to your preference.

Everything new and modern

This is one of the biggest advantages! When you look for a ready-made apartment, the chances are high that the building is old, with outdated plumbing, flooring, electrical and plumbing systems. Which can cause some problems such as leaks, problems with light, among others. In properties that have just been opened or are about to be built, everything is new, so they are maintenance-free for a good few years.

Valuation of the property in the plan

It is common for the prices of newly opened apartments to be much higher than when they were just on paper. This is due to market appreciation, because when it was in the plant there were many units for sale. Once ready, there are applications that are placed on top if the person has not made the initial investment.

Time to plan

Using the time between purchasing and handing over the keys can be very useful for planning. Organize the move, take care of the decoration, furniture, colors of the apartment. In fact, it can be a great time to take it all in and build your dream corner.

You will also have more time to carry out the project, order custom-made furniture, with time to make great negotiations regarding payment.

Disadvantages of buying a property off-plan

Risks of investing in the plant

There are several risks such as delays, increased value, and even the work never being completed due to irregularities. Therefore, always check the reputation of the developer, whether they deliver on time, whether there are many setbacks, and even how they are doing financially. There are many companies that end up going bankrupt during construction and are unable to finish them. So, if you check the background you can rest assured regarding this investment.

Deadlines for delivering the plant project

Anxiety can be your enemy in this process. After all, although the company spends an average amount of construction time, this cannot always be achieved. Unforeseen events may occur and make the deadline extend considerably. Therefore, if you need a place urgently, this may not be the best deal for you.

Advertising is not always the real thing

Remember that when they show the project, it is a proposal. In other words, models and simulated images will be shown. It won’t always be the same, with the colors as beautiful as they are in presentation. Keep in mind that advertising makes everything prettier to make it easier to sell.

In the end you may have to pay more

There are always adjustments, it is very difficult not to have any increase on top of the final amount you will actually pay. There are variations in the prices of construction materials, employees, contractors, among others. So don’t just look at the initial installment! See the intermediate installments and the total investment that will be made. There is an increase in the INCC that occurs, so considering whether you can really handle larger installments is necessary before signing anything.

Payment time

Finally, keep in mind that you are only paying the down payment during the construction period. After that, you will have the remainder, which is equivalent to 70% of the amount still to pay. Therefore, the estimate is that you will continue paying installments for 12 to 30 years after delivery. Of course, it depends on the financing done and the negotiation.

So, do you think it’s worth it or not? Leave your opinion here in the comments. As well as for more posts with tips and first-hand information, be sure to check out our blog every week. Only here at Fashion Bubbles!