READY OR OFFPLAN PROPERTY which you should buy

There is a big dilemma always on buyer’s minds especially when they are buying in different countries. To buy a Property totally ready to move or on different construction. Both sides have positive and negative facts and today we will look together which method works better.

When the investor buys an off-plan Property especially in Turkey, the prices would be min 25-30% off according to ready options, of course this rate depends on the handover time, size of construction, the developer and current market situation of the country.

This low purchases will be the key point of the future profits for the investor, especially when the project is ready and if the developer still have stocks need to sale. Meanwhile, most off the off plan properties offer to investors flexible payment options up to handover date and the investor financially can use the amount for their business during the period.

The possible risks and negative points of the Buying an off plan Property are of course firstly as everyone can guess the risk of completion.
Unfortunately due to some local or global disasters; developer’s or global financial issues the handover date of the projects might be late. Of course there are some penalties on the contracts for the developers but of course as you think it never would be like monthly rental revenue.

The second point is that during the period till delivery time the investor cannot rent their apartment and cannot collect rental revenue.

On the legal procedure side there are differences also between ready and off plan units. For example in Turkey there are 2 different type of title deeds as pre-title deed (kat irtifakı) which is given during construction period and final title deed (kat mülkiyeti).

When the investor buys an off-plan Property, if there is no due to the construction company and if the title deeds are ready they will transfer to the investor pre-title deed. The point is that especially in Turkey when the title deed is not ready during construction process the investors cannot apply the nationality process if they think to get or they can’t use their units as financial assets (in case of ask credit from the bank ).

As a conclusion to solve this dilemma, the investor side should decide first what is the purpose of this purchasement. Most people think that in the case of investment purposes, off-plan Property is better but when we think about the risks sometimes it can be a different scenario. The investor should think all the facts and need to decide according to purchasing parameters.

Written by Mr.Ersin Oksuzoglu .Founder of EOS Turkey Property
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