Buying Off Plan Property Investments In Gambia
Buying “off-plan” is simply a term used when you purchase a property, whether house or apartment before it has been built or in some cases a long time before the build is actually due to complete.
Why do people buy “off-plan”? There are several reasons why people buy “off-plan”.
- Investment. Although there is a degree of risk and uncertainty the discount incentives can out way these . Incentives vary but many developers will offer discounts in the region of 5-20% off the market value. This is usually easier to negotiate if a purchaser is buying ‘in bulk’, ie: when one person buys more than one unit at the same time.
- Build program. A development may not be fully build complete for several months, sometimes years, during which time property prices have hopefully risen, hence an increase in capital growth. Once build complete then the property can be re-valued with hopefully an increase from the original purchase price. (On average the capital growth is expected to be around10-20% dependant on geography and market conditions)
- Assignable contracts. This legally allows an off-plan property to be “flipped”, ie: sold after exchange of contract, but before legal completion. This is always clarified by us with the developer before the original sales are agreed and sold with that in possibility in mind . Although this is fairly usual, not all developers allow this, but if so, then it is made clear in the contract. From the purchaser’s point of view, this facility allows them to reap the rewards that the capital growth can bring, without the need to complete the purchase themselves or having to apply for a mortgage. They can literally walk away from the deal after having made some profit and they avoid stamp duty because the lease is engrossed in the final purchaser’s name.
- Back to Back Sales. This is similar to an assignable contract in theory, but the only difference is that it is often required that the original purchaser has the responsibility of making sure that the second purchaser completes on the property. The first purchaser has a legal requirement to complete (with or without the second purchaser). So for example should a situation arise where the end purchaser failed to get a mortgage and on completion could not complete, the person who purchased directly from the developer would have to, otherwise they are in breach of contract and the developer could rescind the contract and keep the deposit and the property.
- Getting first pick of the prime units. Obvious reason really – to enable a purchaser to choose the best property before the build is complete and before the developer himself increases the price , to take advantage of the capital growth for himself. As an investment, the emerging property market in Gambia offers a safe and secure place to put your money, especially when the world stock markets, and traditional savings banks are offering such poor returns. Buying property at the planning stage can boost your investment profits.
Buy Off Plan Property Investment In The Gambia
Buying property off plan or at the planning stage can boost profits.
- We will advise you on new off plan projects as they come on stream.
- We will provide you with all relevant information on the developers and planned building schedule including architect plans and building specifications.
- You make the decision on the level of off plan investment you can afford.
- We will advise you on the off plan payment schedules you will need to meet, typically between 15% and 30% on signing the contract with staged payments thereafter up to completion.
- We arrange, if required, for you to visit the development site.
- We can take care of the re-sale of the property before the final payment (typically up to 30%) falls due.