Skip to main content

WHAT ARE PRO AND CONS OF PURCHASING PROPERTY OFF-PLAN IN KENYA?

By

Fig. 1 showing photography of off-plan property in Kenya


In Real Estate, off plan purchase is referred to as buying a property that is still under development process or rather it is yet to be completed.  In Kenya, there are various factors that motivate purchase in off plan. These factors include; good payment plan, reputable developer, substantial savings, ability to give input on a show-house and lastly good negotiation power especially while paying in many units. Off plan purchase here in Kenya comes with its pros and cons. They include;

Pros of off plan purchase of Property in Real estate.

What are these pros (advantages) of off plan purchase in Real estate?

1. You are locked in a price which saves you in any future market trends.

Purchasing your property off the plan allows you to lock in the price and saves you from any future market trends that may see the rest of the houses in the area go up in price. Even if your property’s value goes up, you will not need to pay extra. You can then invest in another property and continue growing your property portfolio.

2. Stamp duty concession.

One of the advantages of buying property off the plan is that it saves money that could be used on stamp duty since most Real estate companies offer greater discounts on newly constructed property.

3. Gives buyers more time to plan themselves.

Property buyers are generally needed to put down 10% discount to secure the contract and can use the extended construction time to save up the outstanding balance thus purchasing property off the plan offers property buyers enough time to get their finances in order.

4. Property buyer gets to choose what to change while construction is still ongoing.

Buying off the plan gives you the chance to get to choose what you want changed or improved as long as it is within the set price. Since most people wait for fully constructed houses to buy, buying yours off the plan allows you to choose the best location and the one you believe is ideal for you.


What about the cons of purchasing property off the plan in Real estate? What are they?

As much as off plan purchase has its advantages, on the contrary, it also comes with its risks. These are;

1. Vulnerabilities of deposit.

In a scenario where you end up not being able to get a further mortgage agreement in place after payment of deposit and you fail to pay for the balance, you could lose your deposit altogether. Do you have a choice?  Of course no! You will have to find a new property thereafter. When this happens, you could even be sued by the developer for the difference in price incase they later go on to sell the property for a relatively lower price.

2.Unpredictable market trends.

One thing you can never be sure of is how the market will turn out when buying property off the plan. It is like literally putting all your eggs in one real estate basket. If the market goes up, you probably made a good bargain. If the market remains goes down or remains flat, then you will have paid an inflated price for the house.

3. The developer may run bankrupt hence messing you up.

It is important for buyers to do their due diligence thoroughly before signing any real estate contract with the developer. This is because some developers may go bankrupt hence messing the entire project. Eventually, you are the one who lose it all here because you will have paid 10% deposit before the completion of the project.

Prospective buyers should ask the developer for evidence of past projects, contact people who have previously bought apartments from them, check for negative media reports, and, if possible, visit previous projects to assess the quality of the developer’s work. 

4. Delays that could lead to expiry of your mortgage offer. 

Setbacks in the homebuilding process are common. This brings lots of uncertainty, impacting your living arrangements and could lead to your mortgage offer expiring before completion of the project.

Generally, buying property off the plan has its pros and cons. It is therefore up to you as the property buyer to decide whether or not to purchase off plan. 

Looking for property (land, house or plot) to buy? We believe in a win-win situation where Parties involved in property transaction (our sellers, Baoriat Agencies and buyers) win by getting the best deal ever. For this reason, over the last three years we have had customers who seek for our services repeatedly. We will actively work with you to help you find criteria that works best for you. All you have to do is, call 0721-554-937 or visit Juma Hajee Building room 16 in Eldoret town, Uasin Gishu County.

Find Property in Uasin Gishu County


Baoriat Agencies

Call: +254 721-554-937

Related articles;

  1. Effects of Covid 19 on Property
  2. How to succeed as a first time Real Estate Investor
  3. Architectural Home wall decor ideas in Kenya
  4. Things to consider before buying a home in Kenya
  5. Factors to consider when renting office space
  6. 6 Innovative ways of cutting building cost
  7. 6 Red flags to look out for when house hunting
Labels:

Comments

Post a Comment

Popular posts from this blog

Major Streets in Eldoret Town – Perfect for Mega Investments

By
  If you are looking for a place to put your investment in around Eldoret town, then consider the Central Business District (CBD). With the growing population that is pushing the expansion of Eldoret town – which is currently an economic, education, sports, health and a transport hub for at least 23 counties in the North Rift region and Western Kenya, this Uasin Gishu’s capital is the best bet for your investment. The Eldoret CBD is comprised of FOUR major streets where you can be sure your investment of whatever kind will give you maximum returns. Here are the four major streets in Eldoret CBD: Ronald Ngala Street When you are coming into Eldoret town from Nairobi through Nakuru Highway, this is the first street you will come across as you enter the CBD. Just at the start of Ronald Ngala Street is the iconic Barng’etuny plaza – one of the oldest buildings in the town. Opposite it is several banks including Bank of Africa, Sidian Bank and Cooperative Bank. Other key facilit
Post a Comment
Read more

WHAT ARE TITLE DEEDS

By
  First of all we want to know what exactly is a title deed? A Title Deed according to the dictionary is  a legal deed or document constituting evidence of a right, especially to ownership of property. That means that for one to have claim on a piece of the land, he / she must have a title deed written in his/ her name.  When looking to invest in a piece of land, the first thing you will need to do as a buyer is to conduct an official title deed search at the local land registry. This is often done in the county office in which the land is located. In Kenya there existed different types of title deeds as per the different types of land Acts that have been in existence from colonial times up to the post-independence era. Find Property in Uasin Gishu County Baoriat Agencies Call: +254 721-554-937 Here are the different types of title deed: Indenture :  a title under the Government Lands Act Cap 280 (repealed) Grant :  Government grant under Registration of Titles Act Cap 281 (repealed) a
Post a Comment
Read more

HOW TO MAKE MORE PROFIT AS A POULTRY FARMER IN KENYA

By
Poultry farming is one of the lucrative farming businesses we have in Kenya. Every poultry farmer would wish to make more profit in terms of good cash. We as the Baoriat Agencies  will guide you through your successful journey of poultry farming. Breed choice and the market type are two major underlying factors that will help any poultry farmer make more profit than before. Breed type. In Kenya, we have various breeding types of chicken namely; Rainbow rooster, Kenbro, Kuroiler and KARI improved kienyeji. When it comes to breed type, always opt for the birds with high egg production and has low feed consumption.  KARI improved Kienyeji Chicken are the best breed because they exhibit desirable characteristics such as resistance to diseases, mature very fast as compared to other breed type, have the sweetest meat and also they produce eggs of high quality. They also require an average of 50 grams of feed per day hence, saves the farmer a lot of money used to buy the chicks feeds. Market.
9 comments
Read more