The surge in off-plan real estate investments in Kenya has attracted numerous investors seeking affordable options. Despite the appeal of flexible payment plans and customization options, this blog explores the significant risks associated with off-plan investments.
Cons of Off-Plan Properties: While off-plan properties offer advantages like flexible payment plans and customization, investors must be aware of potential risks before committing.
Risks to Consider:
- Different Development from Expectations:
- Show houses may differ significantly from the final look.
- Investors should closely monitor the construction, materials, and details to avoid surprises.
- Visiting the site during construction and addressing concerns before signing agreements are crucial.
- Risk of Losing Money:
- Off-plan buyers pay deposits and settle payments in instalments.
- High chances of losing money if the project isn’t completed.
- Research completed projects by the developer and seek homeowner experiences for caution.
- Unpredictable Market Trends:
- Market uncertainties pose risks of property value decrease.
- Assess upcoming developments in the location, demand, and supply to gauge market stability.
- Completion Date Uncertainty:
- Off-plan properties often face delays beyond promised completion dates.
- Buyers have the right to seek legal advice or terminate contracts if delays exceed estimates.
- Additional Charges:
- Developers may hide charges, adding up to 10% of the selling price.
- Buyers should clarify charges like stamp duty, conveyancing, survey fees, council tax, insurance, and service charges before signing contracts.
Advice for Investors:
- Thoroughly research the developer’s completed projects.
- Seek legal advice in case of delayed completion.
- Clarify all charges before signing contracts.
Conclusion: While off-plan investments offer advantages, investors must navigate potential risks. Genuine and trusted companies like Commercial Property Kenya prioritize transparency and delivery. To enjoy the benefits, investors should choose developers with a proven track record. Contact us for reliable and secure off-plan real estate investments.