In the past, many off-plan housing schemes have been launched in Kenya’s property market. Many people looking to acquire a new home are now buying off-plan. When buying into an off-plan project you are purchasing a property that does not yet exist. The project could be existing in the form of plans or could still be under construction. Off-plan buying means purchasing a property before it has been built or completed. Off-plan housing schemes have become increasingly popular with a lot of Kenyans because of the benefits they offer to interested investors.
Off-plan investments are generally driven by the high prices of the real estate market and time taken to deliver a housing unit. Buying off-plan is frequently an appealing option for investors due to the discounted purchase prices compared to the value of the completed property. It allows the buyer to place a deposit to secure the property while construction takes paces. When buying into an off-plan project the buyer can pay for it in instalments during the design stage in development. Buying off-plan provides potential capital gains and further opportunity to acquire future assets at the current market price.
However, there have been numerous reports of developers who did not deliver as promised. Despite off-plan being affordable, most homebuyers are left stuck after investing money when the home-buying scheme collapses or fails to deliver as promised. The buyer can lose money in the case that the developer is fraudulent. At times the developer might deliver substandard products resulting in buyers not receiving the value of their money in the off-plan investment. Some developers are unable to deliver housing units within the time frame of the agreed period, thus affecting the buyer’s financial plans. In some projects, the developer delivers a much lower standard than what was advertised resulting in a lower standard of finish than expected. On the other hand, delays seriously impact buyers who had planned to move in at a scheduled date.
It is important to assess the market value when conducting due diligence. It is advisable to ask the developer for their funding structure for the off-plan project. A good developer should not depend on off-plan sales to finance a project. It is key to look into the team developing the project for it is essential that the people are reliable and professionals who can perform quality work. Before buying an off-plan property, make sure that you are dealing with a trustworthy and efficient developer. Visit previous projects and evaluate their completed housing units, this will provide you with knowledge you need before deciding to directly invest. Seeking the services of a professional lawyer with knowledge in real estate will enable you to understand the sale agreement and contract much better. Ask for updates and make sure that you are constantly informed with the project’s proceedings. conducting regular site visits will provide you with new information that will be crucial for your investment. There are risks and advantages involved in off-plan housing schemes. It is important to choose what works best for you when deciding to purchase a home.