Are you searching for a real estate investment strategy that offers discounted prices and the potential for significant returns? Look no further than off-plan properties.
In this ultimate guide, we will unveil the benefits, critical factors to consider, and insider tips that will empower you to make informed decisions and make a successful investment.
5 Benefits of Buying Pre-Construction
With buying off plan you can enter the real estate market at a fraction of the cost, and watch your investment grow over time.
Off-plan properties offer a unique opportunity for affordable real estate investments. Buying off-plan means purchasing a property before its construction is finalized.
1. Invest at the lowest price
Off-plans projects are usually complete within 2-3 years. By buying a unit as soon as the project is launched, you can invest at the lowest price possible. Right now you can purchase My Tiny House, or Mini Condos® apartments with pre-construction prices.
2. Flexible Payment Plans
You don’t have to do an upfront full cash investment. Instead, you only need 20% downpayment to secure your property. Off-plan properties often come with flexible payment plans, making them more accessible to a broader range of investors and allowing you to pay a % every month until the handover date.
With manageable installments, you can start on your real estate journey with confidence, regardless of whether you’re a first-time buyer or an experienced investor.
3. Potential Capital Appreciation: A Pathway to Profitability
One of the key benefits is the attractive pricing offered by developers compared to completed properties.
From the time of the launch to the day of the handover, properties can appreciate by as much as 50%. As the property takes shape and nears completion, market trends and demand drive its value upward. This means that while you slowly pay for the property you are also making money on the top. Our studio apartments in Donja Lastva Tivat, where sold for 60.000€ off plan, and 90.000€ on the completions. Now this same apartments are worth more then that.
4. Return on investment in Montenegro
For any investor ROI is very important. With easy visa incentives and low property tax Montenegro is attracting more and more people every year. This creates a high demand for long-term rentals, leading to high rental yields. Seasonal short term lets are also always a good option since Montenegro is getting more popular touristic destination.
5. Risk free and safe investment
All money being deposited in off-plan properties can be placed in an escrow account, ensuring the safety of your investment until the construction is completed. At Mini Condos® we make sure that we have at least 30% sold properties before we proceed with the construction. With our off plan properties, your 20% deposit is fully refundable.
Even though buying off-plan properties can be a highly lucrative investment opportunity, it’s essential to be aware of important considerations and take certain steps to ensure a successful venture. By understanding these factors and implementing the suggested tips, you’ll have the knowledge and insights to make informed decisions and maximize your investment potential.
3 things to be aware of when buying off-plan
1. Construction Delays
One of the main challenges with off-plan properties is the potential for construction delays. Factors like weather, labor shortages, worldwide or local economic, sanitary or political conditions or any other external factor may hinder the completion timeline, leading to extended waiting periods for buyers.
Tips: Consider a leaseback plan with the developer to ensure your investment starts bringing you an income whether it has been completed or not yet.
2. Market Conditions
The property market is influenced by various factors, including economic fluctuations and shifts in demand. It’s crucial to consider the current market conditions and future projections to evaluate the potential value appreciation of the off-plan property.
Tips: If your intention is to rent out the property, it’s important to assess the rental demand and vacancy rates in the area. A strong rental market with consistent demand can ensure a steady income stream and favorable rental yields.
Check the price trends of properties in the area to gauge their appreciation rates over time.
3. Developer Reliability
Researching and choosing a reputable developer is crucial when buying off-plan. Consider the track record and experience of the developer. Evaluate how long they have been operating in the industry and their past performance in delivering high-quality projects. Look for a developer with a proven history of meeting timelines and ensuring customer satisfaction.
Tips: Visit their completed projects and look for review or testimonials from previous buyers. 50% of the buyers, came through the recommendation of existing buyers of our properties, vouching for their satisfaction of the previously delivered properties. Check their testimonials.
Don’t wait to buy real estate, buy real estate and wait. The power of off-plan investments is rapidly increasing, and properties that cost 100,000 euros off-plan can double in value within just a few years of completion. Let your money work for you and not the opposite.
As a property developer with 15 years of experience in Montenegro, we have a deep understanding of the off-plan property market and a proven track record of delivering high-quality projects.
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