Off-plan Property In Estonia

As specialists in the field of off-plan investment property in Estonia, we outline below some of the reasons why off-plan property is so beneficial to international investors. Off-plan purchase offers investors the ability to buy at the lowest possible price and achieve maximum returns on investment.

Many investors keep their property for a number of years and receive excellent rental income. Meanwhile they enjoy a beautiful holiday home and watch the value of their property increase steadily.

Off-Plan Property in Estonia

Many developers offer beneficial payment schemes. Payment schemes currently on offer allow you to buy property off-plan, ie. before or during construction when the price remains low, with down-payments of between 10 and 20% of the property price.

By the time the property is finished, prices rise due to market forces and the greater general appeal of a completely finished property that is ready to move into. Investors therefore sell the property on to another property purchaser and in so doing, enjoy some excellent returns of on average 12% per annum, whilst never having paid the full purchase price.

Investors should however exercise due diligence and choose wisely, making sure that the property is located in an area where they will resell quickly and easily; alternatively, where there is a high rental demand for buy-to-let investment in Estonia. New, off-plan developments are easier to rent to foreign businessmen and upwardly mobile locals who often do not want to live in older buildings.

How can property be cheaper if bought off-plan – How does it work?

In order to limit financial risk and debts, the developers of any project will wish to sell units off-plan. They understand that if buyers cannot see a physical property at the beginning, they will demand a lower price, while relying purely on the developer’s reputation, the property location, artistic impressions and computer simulations on which to base their decision to purchase.
In addition to the excellent off-plan price, some highly beneficial finance structures are in place. You sometimes need to pay only around 10-20% of the purchase price in the form of a deposit, while the rest is payable upon completion, offering cash flow benefits to the buyer.

If you decide to invest in off-plan property, you will need to decide which strategy you will adopt to achieve your return on investment. Our experts will help you to choose the most appropriate plan, creating an investment programme suitable to your needs, whether this is pure investment in Estonia or a buy-to-let strategy. We will also assist you in finding the most appropriate location to suit your investment needs.

Maximizing Profit from Off-plan Investment in Estonia

The Process of Price Increase

  1. Purchasing early

    Prices never remain low for long and, as construction progresses, prices begin to rise steadily. In Estonia, as in any other market, it is important to buy as soon as possible during the early stages of development when prices remain very competitive but are already beginning to rise. Early investors will invariably see the greatest returns.
  2. Purchasing the best units

    Early purchase allows investors to choose the most sought after properties on any given development. The best units always offer higher capital appreciation in the smallest time frame and can often demand the greatest rental incomes. Penthouses are often firm favourites.
  3. Price increases as development matures

    As the development begins to be constructed, the value of the units begins to rise. A completed show home is normally available for viewing at this stage, while buyers are taking less of a risk as they now do not need to rely 100% on plans.
  4. Price appreciates as more units sell

    As more units are sold, the price of the remaining units rises. Units sell faster when buyers are able to physically see them. There is often a phase payment structure in place which mirrors the increasing value of the properties. To the early investor this means that, should you decide to sell your property, it will be worth considerably more at this stage than when you made your initial purchase and paid the 30% deposit.

Investors are currently making some excellent investment choices in sought after locations of Estonia, and we are dedicated to helping you to pick the best property investment options suitable to your particular needs. In this way, you can generate personal wealth through safe and intelligent off-plan investment.

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