Why is it Better to Buy Plan or Construction than Ready-Made Properties?

Buying a property off-plan or under construction versus one already ready or completed is one of the key decisions in the real estate sector. Below, I explain to you as a real estate expert why it can be more advantageous to buy flat or under construction.

When you buy flat or during the construction phase, you are purchasing the property at a lower price than when it is completely finished. This is because developers tend to offer discounts or more affordable initial prices to attract investors in the early stages of the project.

Property equity—that is, the increase in value over time—begins to build from the moment you buy. As the project progresses and is completed, your investment has already begun to generate profits. When buying under construction, it is common for the value of the property to have increased by the time it is ready, allowing you to obtain a greater return if you decide to sell or rent at that time.

 

The costs of construction materials, such as steel, cement, and other inputs, tend to fluctuate. Buying a property at an early stage allows you to lock in a fixed price before material costs can increase, which often affects the sales prices of finished properties. In addition, properties under construction are not subject to price adjustments that may occur if materials become more expensive during the development of the project, which means that you, as the buyer, do not absorb these increases in the final cost.

 

When you buy flat, you have the advantage of customizing some finishes of the property to your liking. This may include the choice of colors, materials, or even minor structural changes such as room layouts, depending on the developer. In a ready-made or completed property, that flexibility is limited, and any modifications would require additional renovations that involve time and money.

 

Depending on location, demand for ready properties can be high, putting pressure on prices. In high-demand areas, such as tourist or growing urban areas, already completed properties often have higher prices due to competition. However, buying at an early stage in those same sectors can mean a significantly lower cost, with the expectation that demand and appreciation will cause the property to increase in value once it is completed.

 

When purchasing under construction, you generally have access to more flexible payment plans. Developers usually offer financing directly or through banking institutions during the construction phase. This allows you to pay the cost of the property in installments as the work progresses, which makes it more manageable from a financial point of view. In contrast, a completed property usually requires a more immediate payment or a higher mortgage upfront.

 

Although a property under construction is not available immediately, this waiting time can be beneficial for those who plan their investment in the medium or long term. If you don't need to move right away, waiting for the property to be ready can be a great way to lock in a lower price and take advantage of equity. Plus, it gives you time to prepare financially and have everything ready for when the property is handed over.

 

Buying flat or under construction offers multiple benefits that smart investors take advantage of, from a lower entry price, the possibility of customization, to a considerable gain in capital gains once the project is completed. On the other hand, a ready-made or finished property may be convenient for those looking to move immediately, but usually has a higher initial cost and less flexibility in terms of payment and customization.

 

At Yinet Reyes Realty Group, we are here to guide you and help you make the right decision depending on your needs and objectives. If you are looking to maximize your investment and obtain the best value, we help you find the best options for projects under construction with great potential for revaluation. The time to act is now!