Off-Plan property investments around the world adopt a simple practice. The earlier the purchase within the development the cheaper it is for the investor. In many respects once the word gets out on a new release or a second phase in a development it is not unheard of that within the first day of launch, 30% or indeed as it is known in the real estate industry the "cherries" have been snapped up. It has even been known that people camp outside the sales office 48 hours before the initial release. One of many factors to consider is that in a lot of cases in investment hotspots the whole development has been sold out even before a hole has been dug to create the foundations.
A table of information that can be applied to any off-plan development from around the world is outlined below.
The most important factor is the forecasted capital growth.
The Construction Process Pre-Release: Describes the first stage of the Off-Plan process. As the developers await the building licence, in many respects the licence application has been presented to the local town hall, or the developer has just obtained the paperwork, the development is offered for sale to those investors who wish to reserve a unit(s). At this level the development offers the investor the highest rate of return.
0 Months Licence Approved At this stage when a developer has obtained the licence the developer increases the price as the land is more valuable. Clearing of the land and excavation for the foundations gets underway.
6 Months Construction Now the foundations have been laid, the skeleton for the dwellings have been erected. The dividing walls are in place and the roof is on. During the next 6 months the plasterers start on the walls, the electricians wire the units and the kitchens and bathrooms are installed. Final painting concludes the internal and external build and the development is complete
12-18 Months Completion On "Completion" the building works have stopped and the development has been issued with a "Habitation Licence" and the development is deemed safe for use.
