Buying a property off-plan or  Ready? This is a common question among people who are looking to make their dream of buying a new apartment come true. With this in mind, Emplavi has prepared this blog post to clear up any doubts and help you on this important journey, presenting the advantages and points of attention that should be taken into account when buying a property off-plan.

But what is a “property off-plan”?

The so-called “property on the plan” is, in fact, a popular term  used in the real estate market in general, to define the purchase method for properties acquired from a construction or development company.

Real estate development, in Brazilian law (Law 4,591 of 12/16/1964), is the name given to the set of activities carried out with the purpose of constructing or promoting the construction of buildings or sets of buildings, as well as their marketing, in whole or in part, composed of autonomous units that, as a whole, form a condominium.

A real estate development is therefore made up of 3 essential elements:

The Land: the area designated for the construction of the project;

The Developer: in general, the company that will be responsible for planning, managing and delivering, within the deadline, price and conditions determined, the completed works to the future residents purchasing the independent units.

The Construction Company:  Responsible for executing the project within the conditions and deadlines established by the Incorporation contract.

Once the standards set forth by law have been met, the project has been approved by the competent bodies and the due IR –  registration of the incorporation memorial with the real estate registry office, the Developer will be able to market the autonomous units of the project, through a promise of purchase and sale contract, also starting the works that, at the end of the established term, must be delivered to the respective owners, who  will form the  condominium of the enterprise.

But after all, what is the advantage of buying a property off-plan?

At first glance, buying off-plan properties may not seem like the best idea. Many doubts and insecurities regarding the future of the economy, the reliability of the companies involved, or even lack of knowledge regarding the acquisition process and documentation, in addition to the feeling of buying “just a dream”, can discourage buyers when deciding to buy this option. However, buying off-plan properties can be an excellent deal and often the only purchase option for those who want to live in the place they have always dreamed of. This experience, when well planned and guided, can be very advantageous and completely successful.

Discover some of these advantages now and start dreaming about your new life in the property you've always wanted.

Planning, flexibility and greater discounts on purchases

One of the main advantages of buying a property off-plan is the possibility of planning payments over a longer period of time and with less commitment to monthly income, since the payment plan for the amounts relating to raising funds, during the construction period,  can be made monthly, interspersed with semi-annual and annual installments, unlike what happens with ready-made properties, the payment for which must be paid in full upfront or through real estate financing, which can make the purchase difficult or practically unfeasible, depending on the income profile or even the amount required for the down payment on the property, which in general, can vary between 20% to 30% of the full value of the desired property.

Furthermore, negotiating a property off-plan is more flexible and can be even more advantageous when the amount of funds to be contributed by the buyer as a down payment, or even during the construction period, is greater than the minimum amount stipulated in the standard table for the desired unit. Thus, the more funds the buyer contributes as a down payment or during the construction, the greater the proportional discount offered by the developer for this advance payment may be.

More savings and technological advances in innovative projects

Buying a property off-plan can be the best solution for those who can wait and is perfect for families who do not need to move into the property immediately and who are willing to make a medium-term investment with more time to plan the purchase.

Not having extra maintenance expenses is another decisive factor for this choice and a benefit to be taken into consideration when thinking about buying a property off-plan, since the future resident will not need to worry about leaks on the upper floor, old plumbing, electrical systems that require maintenance and other damages that need repairs.

When the project leaves the drawing board and becomes a reality, it will be covered with new, modern and high-quality materials. In fact, the qualitative superiority and technological innovations that are incorporated into each new real estate project are another very important factor to be taken into account, as they are differentials that will add greater value to the property, in addition to providing greater comfort and facilities to future residents.

However,  It is essential that, together with the planning and purchasing decision, the construction standard and the solidity and safety of the company responsible for the incorporation and construction are thoroughly researched in order to ensure that everything promised in the contract, as well as in the descriptive report registered by the company, is in fact delivered.

Customization: greater power of choice and versatility in projects

Still talking about projects and innovations, another great benefit of buying a property off-plan is customization. In many cases, it is possible, together with the construction company, to change some of the formats of the desired apartment. Buying a property off-plan offers reversibility options and you can make the apartment of your dreams exactly the way you always wanted.

The Price and Valuation of Off-Plan Properties

The best news, however, may still be yet to come: the appreciation that off-plan properties can have during the construction period. There are many factors that can accelerate this appreciation, such as location, typology, construction standards and differences, leisure facilities, neighborhood, as well as economic and market variables that always have a positive impact on the real estate market, especially in times of economic stability, with low interest rates, more accessible real estate credit, inflation control and increased demand for new properties. Within this context, once completed, off-plan properties may accumulate a higher appreciation compared to the amounts paid by the investor during the construction period, since these amounts are subject only to variations in the sector index. (INCC) which, most of the time, does not keep up with the appreciation that the property adds in the same period.

An example of this is the new neighborhood of Brasília, the Setor Noroeste, which is currently the neighborhood with the greatest potential for appreciation in the coming years, since the demand for this is the  Brazil's first ecological neighborhood is increasingly larger and the value of m² there is still 20% below other upscale neighborhoods in Plano Piloto, indicating imminent appreciation.

However, it is important to emphasize once again that the solidity and security of investing in a venture from a reputable company could be decisive.  for this gain.

More security and less bureaucracy

Another positive point of buying a property off-plan is that it provides greater security and less bureaucracy. This is because the property has never had another owner. Therefore, the paperwork and documentation required to register the property tends to be quicker and simpler.

Registering a used property requires much more bureaucracy, both in the legal, civil and criminal spheres, as well as in accounting. It is not uncommon for deals made on used properties to be undone at the notary's office due to these requirements.

However, it is worth emphasizing once again that regardless of the purchase method being an off-plan property, to ensure a good deal, it is essential that anyone interested in buying an off-plan property researches the developer, its financial health, its history, the works it has already delivered and, above all,  the commitment it has proven to have with its customers and the city throughout its history.

Finally, buying a property off-plan can represent the biggest and most important deal of a lifetime. It is a long-lasting relationship between the buyer and the developer and, therefore, must be permeated with all  confidence and security possible for the smooth running of this long journey towards realizing the dream of living in the property of your life.

Are you interested in buying a property off-plan? Choose Emplavi

Schedule a visit to our site today Emplavi Noroeste sales and decorated center – SQNW 102  or Emplavi Águas Claras sales and decorated center – Copaíba Street  and be amazed by the quality and sophistication in every detail.

Access www.emplavi.com.br to learn about our projects and visit our blog to stay up to date with everything that happens in the real estate market, tips and much more!

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