Thinking of buying an investment property can be intimidating and even scary. The pressure of trying to come up with serious cash in a short period of time or to take the dreaded mortgage can be too much.
If you’re an investor who’s playing for the long haul and is looking and buying a property in Egypt, then you better take a good look at what an off-plan property might do for you.
An off-plan or a pre-construction property is a property that’s sold before a structure has been built upon it.
Given that most people in Egypt are buying pre-constructed properties, it comes to no surprise that real estate companies offer unique benefits and incentives to those who opt to go to an off-plan route.
Your decision needs to be as informed as possible, so don’t jump right into the purchase before you figure out what buying off-plan entails. Even after you’re convinced that an off-plan property investment is the perfect investment for you, you’ll need to make sure that you’re dealing with an experienced and trusted developer whose word and work you can bank on.
Let’s take a look at why buying an off-plan property in Egypt is such a great idea for any serious investor:
1. Profit Margins
As an investor, your number one concern is money. You should be looking and comparing the money you put into an investment versus the money you’ll get out of it over some time.
If you’re a long-term investor, then an off-plan property is one of the best investments you can make. Because you’re essentially buying land, you can manage to skirt around some unnecessarily high costs of buying a built property and shoulder only the true cost of building on the land.
For this route to pay off, you need to not be in a rush and be willing to invest the time it takes to develop your property from the ground up, once you’re done, you can start reaping the benefits from it.
You’ll be able to charge the same for your property in rentals as other investors who bought On-plan properties, yet your initial investment will have been much lower.
2. Location, Location, Location!
Almost no other property type offers you as much flexibility when choosing your property’s location as an Off-plan property does in Egypt.
If you’re coming in before construction has been set up, you have a better room to choose the exact place you want your property to be located. This opportunity isn’t to be taken lightly by any investor, as the location does matter when it comes to properties. You should consider other things such as:
- What major amenities are close to your property?
- What value do they add to your property?
You can consider all this when you’re buying an off-plan property and make sure to pick a location that is most likely to add to your property’s value.
3. You Can Do It Without Taking A Loan
If you’ve been in an investment property business for long enough, you might know that paying off a loan isn’t the most delightful thing to do. In fact, it can be the worst nightmare, depending on where you stand financially!
The good news is you can choose to buy an off-plan property out of your pocket and still be able to service your payments in good time. This is because most realtors offer very attractive terms for their pre-constructed properties, and you can get to pay what you owe over the longer periods.
Some real estate developers aren’t offering payment plans that range from 0 to 10 percent down payment. This knocks down a considerable amount of money you need for you to start buying a pre-construction property.
If you have a bit of money in the bank, you just might manage to buy a property without getting a mortgage, which will translate to more financial freedom on your end! However, if you still need a mortgage to buy your property, choose a broker that can negotiate the best terms for you.
Buying off-plan property can be one of the most rewarding investments depending on what you want to achieve as an investor. If your main concern is money but not necessarily time, then this might be the best investment for you.
A pre-constructed property offers you several financial advantages. The money you need to fork out in the initial stages is considerably lesser than you would need to get in an on-plan property. You’re also given longer periods to pay your balance which translates to less pressure on your part, and you might even do all this without getting help from a bank.
Additionally, buying an off-plan property offers a unique opportunity to choose your property’s location than you would have if buying a pre-constructed property. You can take advantage of all these incentives and buy your property at an earlier stage but make sure you have done all the necessary research before purchasing. If you have that covered, you should be in for a very rewarding ride!