Buying off the plan properties has become very popular over the last few years and it is one of the most lucrative investment strategies today. The reason is very simple, they are usually cheap, and you get to develop them quickly. One downside however is that they require a lot of work to be done before you can actually start living the property. However, it will pay off in the end as you can earn hundreds of thousands of dollars just from the selling and buying of these properties. Read on to discover some of the ways you can buy these properties and profit from them.
So, what is it? It’s basically an agreement between you and another party. The other party is called a developer and they will offer you land for a certain price. In exchange, you will rent this property to them on a monthly basis. You have to pay a small amount of down payment and closing costs when you buy the house off the plan. The developer gets the full amount up front without any upkeep or issues.
So what are the benefits of buying luxury villas for sale in Dubai or villas for sale in Palm Jumeirah? There are many, but perhaps the best benefit is that you don’t have to do anything maintenance wise. You just wait for your tenants to pay and you don’t have to worry about mowing the lawn, repairing the windows, etc. This means that you can focus more time on your actual business, which will produce more money. It also allows you to leave your children at home and enjoy your life to the fullest.
How do I buy one of these? You can usually find these by searching online through any search engine. Just type in “plan” and you will get tons of hits. Look around and ask people that you know if they are using one of these properties. See if there is a trend to buy one.
Why should I buy one of these? The reason is pretty simple; you will always make money when you purchase a property with this strategy. You will earn a fixed rate monthly rental for as long as you own the property. With this you won’t have to worry about inflation rising your rent, which will cost you money over time.
What are some downsides? One of the downsides is that your credit score will drop a bit while waiting for the transaction to go through. However, if you fix this problem it won’t take very long to repair. Another issue is that you can’t get into all the popular foreclosure markets like Chicago because of how strict they are on who they allow to buy from them.
Can I put this on my credit report? Yes, you can. You will be able to report it as a plan if you wish. However, you shouldn’t do this too often. If you ever want to sell your property it will take some time to be able to sell it with this types off plan property Dubai on your credit.
Is it legal to sell my property this way? This is legal in most cases. However, you need to check with your local city or county to see what the rules are in your area. Many cities and counties have limits on how much you can charge for buying and selling off your home with this type of plan.
Does this affect my home insurance? This will not change your home insurance. What it will do is increase your premium for the plan. This is because you will be viewed as a higher risk than you would be if you just kept the property as is. However, if you keep the property in good condition then you can save money on your insurance since you will be less likely to have a total loss on your property.
Is it possible for me to add more on to the plan? You can add on to a plan but this won’t affect your credit score. However, you can also add on additional funds to your budget for whatever reason you choose. Once you have the money added onto the property you can use it to pay down some of the loan or anything else you would like to do with the property. Just make sure you have the proper documentation.
Are there other pros and cons to buying off the plan? There are several pros and cons to buying off the plan and these include how fast the transaction is, how much easier it is on your budget because of lower mortgage rates, and even how affordable it is compared to buying a house in traditional mode. Just take a look at some options above and see which ones appeal to you the most.