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 for 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 - 30% of the purchase price in the form of a deposit, while the rest is payable upon completion. This may be financed by a mortgage if necessary. See our Malta investment finance section for more details.
If you decide to invest in off-plan property in Malta, you will need to decide which strategy you will adopt to achieve the best return on investment. Our experts will help you choose the most appropriate plan, creating an investment programme suitable to your needs, whether this is "pure investment" or a "buy-to-let" strategy. We will also assist you in finding the most appropriate location to suit your investment needs.
Maximising Profit from off-plan investment in Malta
The Process of Price Increase:
Prices never remain low for long and, as construction progresses, prices begin to rise steadily. In Malta, as in any other market, it is important to buy your off-plan villa, townhouse or apartment 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.
Early off-plan property purchase in Malta 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 with investors.
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 purely on plans.
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 off-plan property in Malta and we are dedicated to helping you to pick the best 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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