There are some main differences between buying off-plan property and buying a traditional completed property.
The most obvious difference is that completed properties are already ready to be viewed in person and lived in before purchasing, while off-plan properties are not.
Another difference when it comes to purchasing a completed property vs an off-plan one is that each property is paid for differently.
With the typical purchase of a completed property, buyers or investors will generally put a deposit down and pay for the remaining amount in mortgage repayments or a one-off cash payment covering the total property price.
With off-plan properties, it will often be possible to split your payment into separate instalments, with a reservation deposit at the beginning and the final cost paid when the finished property is ready.
Another big difference between new build properties that are off-plan and older completed homes is that off-plan properties are a lot more eco-friendly.
This is down to the materials the development is often made from. The fact that new-build homes offer better insulation reduces the need to use artificial heating, saving energy.
The type of buyer that completes an off-plan property purchase usually also differs. First-time buyers will rarely buy an off-plan home unless they’re purchasing property under a shared ownership scheme.
Typically off-plan properties usually are more popular with buy-to-let investors in the UK.