A Complete Guide: Buying Off-plan, New, and Resale Properties

When buying a property, whether for investment or as a place to live, the options typically fall into three categories: off-plan properties, brand-new homes, and resale properties. Each has its own set of benefits, risks, and financial implications. In this blog, we'll explore these options and help you understand which might be the best choice for you.

What Is an Off-plan Property?

Off-plan properties refer to real estate that is either under construction or has approved plans but has yet to be built. Homebuyers and investors can purchase these properties before or during the construction phase. Typically, off-plan properties take 2 to 3 years to complete, though larger projects can extend to 4 or 5 years or more. Buyers can review detailed project plans, including floor layouts and the envisioned final design. These properties can range from apartments to villas, as well as other types of real estate.

You should know the benefits and potential risks of purchasing off-plan property:

Benefits

Off-plan property investment involves purchasing a property before it’s fully constructed. One of the primary benefits is the potential capital growth. By buying at today's prices, you might benefit from property appreciation by the time it's completed. Additionally, developers often offer launch prices and flexible payment plans, allowing you to spread out payments.

Another benefit is that you can often customize certain aspects of the property, such as layout, finishes, or even room sizes, allowing for a more personalized living space. Furthermore, developers may offer payment plans for off-plan property purchases, making it easier to manage your finances over time.

Risks

While off-plan investments have their advantages, they come with risks. Construction delays can occur, affecting your investment timeline. There’s also the possibility of changes in market conditions impacting property values. In rare cases, developers may face financial difficulties leading to project delays and cancellations. It’s essential to research developers thoroughly and consider the best areas to invest in off-plan property to mitigate these risks.

Mortgages for Off-plan Properties

You can obtain a mortgage for an off-plan property, and many banks offer financing options for such investments. However, the terms may differ from traditional mortgages. Lenders often require higher down payments and may impose specific conditions until the property is completed. One of the first steps is to open a bank account in the country where you plan to buy the property. The bank will request documents such as proof of income to assess whether you can afford the investment. Additionally, conditions can vary—for example, some countries may only offer mortgages once 70% of the construction is complete. It is advisable to consult financial institutions experienced in off-plan property investments to explore your options.

Discover TEKCE's TeleMortgage service and the ease it offers. This revolutionary service in the real estate sector allows you to manage your entire mortgage process from the comfort of your home.

Popularity of Off-plan Properties: A Global Look

Off-plan properties in Dubai, Türkiye, and Spain are renowned for their top-tier amenities, cutting-edge technology, and innovative architecture. In addition to these appealing features, the financial aspect makes them attractive to both homebuyers and investors.

As mentioned, purchasing an off-plan property at its launch price often comes with flexible payment plans and installment options. Buying a property in the early stages of construction allows you to secure it at a more affordable price, as real estate prices typically rise due to market inflation over time.

For example, off-plan properties in Dubai offer flexible payment plans during the construction phase, which typically lasts 2, 3, or even 4 years. Additionally, investing in off-plan properties in Dubai can yield higher returns compared to brand-new properties.

For those seeking a home or investment property in Europe, the new Neovilla project in Spain offers the opportunity to purchase off-plan properties with a delivery timeline of just 4 to 6 months.

In Türkiye, you can find off-plan properties, especially in cities like İstanbul, Ankara, and Antalya. Antalya, in particular, offers a variety of projects, including beachfront properties, city-center developments, and homes nestled in nature. These projects are located in strategic areas, providing excellent potential for high returns on investment.

Many investors choose off-plan properties with the intent to sell them at a higher price or rent them out after the project is completed, capitalizing on the value appreciation.

Buying Brand New vs Resale Properties

While making a decision for home buying the home buyers generally think which choice is better buying a brand new or a resale property. Making these decisions can depend on one’s financial situation and preferences. Learn all the main differences between a resale home and a brand-new home.

Conditions: New build properties are typically in excellent condition, as you will be the first owner, ensuring that everything is in proper order. In contrast, buying a resale home may involve some renovation work, as you might need to repair or renew certain areas of the property. This can include updating fixtures, addressing wear and tear, or even more extensive repairs, depending on the age and condition of the home.

Amenities: New-built houses often come with modern features, energy-efficient designs, and warranties, which resale properties might lack. In many new builds, you can find advanced smart home systems and communal facilities such as spas, saunas, gyms, and even Turkish baths—sometimes included within the home itself. These added amenities enhance convenience and the overall living experience.

Location: One of the main advantages of buying a resale home is that they are mostly situated in developed neighborhoods, offering convenience and stability, but in rural areas, it may be less desirable. New-built homes are often part of large developments that include daily amenities, whether located in city centers or suburban areas.

Size: The size of new-built properties and resale homes can exhibit both similarities and differences. While it is possible to find spacious options in both categories, new apartments often tend to be smaller compared to their resale counterparts. However, this can vary depending on the specific project and the preferences of the developer. Many new homes do come with additional features such as storage spaces, extra rooms, and efficient layouts, providing practical living solutions.

Customization: Customizing newly built homes is generally easier than modifying resale properties. With new builds, you have the opportunity to discuss and adjust the size and layout according to your specific needs and preferences before construction is complete. In contrast, resale homes do not offer this level of flexibility, as any changes must be made after the purchase, often requiring significant renovations and time.

Investment: Investing in new construction homes​ allows investors to purchase at a lower cost, with the potential for the property value to increase by the time construction is completed. Resale homes offer the advantage of being ready for immediate use, providing a quicker return on investment. On the other hand, off-plan projects often present greater potential for higher returns in the long term, as they typically appreciate in value during the construction phase.

Tax: Property taxes can differ between newly built properties and resale homes depending on the location. In some areas, newly constructed homes may come with tax incentives or exemptions for a certain period. Resale properties, on the other hand, typically have established tax rates, but you should still research the specific tax implications for both.

Deciding whether to buy a new home or resale depends on your priorities—whether it’s investment potential, immediate availability, or customization options. For investors, off-plan property investment offers an exciting opportunity, especially in growing markets like Dubai. For those looking for charm and established neighborhoods, buying a resale home might be the better option.

In either case, it’s important to do your research, especially when it comes to financing options, taxes, and potential risks. Whether you choose to invest in off-plan property, new houses, or resale homes, understanding the pros and cons of each will help you make an informed decision.

RELATED PAGES

Build vs. Buy: Which is More Affordable?

Unlocking the Potential of Land Investment

Luxury vs. Affordable Property: Which Investment Wins?

Branded Construction Projects in Dubai

Build Your Dream Home Fast in Spain with Neovilla