Many people prefer the idea of buying a condominium in the city of Singapore “Off-The-Plan”. However, in order to do so profitably, it is important to understand what the concept entails. Moreover, it is also important to understand the impact of speculator getting involved in the process. This will make the endeavor more successful and help a person to make their mind whether to invest on a condominium project off the plan.

So what does buying a condominium “Off-The-Plan” actually mean?

Well, the phrase “buying a condominium “Off-The-Plan”” means entering a contractual agreement about purchasing a condominium unit even before the entire property is completed. Buyers get to make up their mind and decide about the condo unit on the basis of design layouts, dummies and multimedia presentations. There is no actual property to inspect before finalizing the property purchase. The purchase agreement can be made after contacting the property developer post-launch of the property, and the property is handed over to the buyer on completion.

Financial benefit of buying a condominium off the plan

The most important reason why most people opt for property purchase during the time of launch is due to the financial benefits the process has to offer. This is due to the primary principle of real estate that as time passes on the prices of the properties are meant to appreciate. Hence, by opting to buy a property before completion, a person will be able to own a property at a much cheaper price that what most others have to pay. After all, a properly developed condominium complex like the City Gate Condo will certainly take a few years to complete. The price of the condo units in the property is sure to appreciate by the time of completion.

Moreover, property prices often rise due to the other developmental activities in the surrounding area during the time the property is being constructed. Since a condominium complex takes at least 3-5 years to complete, there is a great chance that exciting new developments would be announced for the surrounding regions. These developmental activities would eventually have a positive impact on the price of the property by the time of completion.

The flip side of such investments

Now, these kinds of investments are great for people who actually want to make use of these properties for living. If a person buys a condominium to make it their home, or to rent it out to tenants, they will be able to purchase a property at a very good price. However, for people who make such investments solely to make a short-term profit by selling the property altogether after a few years, there are chances of a negative outcome as well. In case there is a surplus to the demand of condominium units in a particular area, an investor must be left with a condo unit to sell with the prices set to drop further.

Hence, it is important to carefully consider make “Off-The-Plan” investments on condominium complexes like the NorthPark Residences in order to ensure a significant financial profit at the end of the deal.

Author's Bio: 

Having dealt with condominium properties like the NorthPark Residences for over a decade, Alex K Robert now helps investors invest wisely on properties like the City Gate Condo and others in the city-state of Singapore.