One of the most common topics when it comes to buying a new property, whether to live in or invest in, is the purchase of an “off-plan property”, especially when the economic scenario is going through turbulent times, especially in the financial sector which, in this final stretch of 2021, has been showing great instability, leaving investors increasingly insecure about the future of their income from investments that involve greater risk, such as the stock market. With the real estate market booming and the growing demand for properties, the same questions always arise when deciding what to do when choosing the right property: should I buy an off-plan property or a ready-made property? With this in mind, Emplavi has prepared this content 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 an off-plan property. But, after all, what is a “property on the plan”? The so-called “off-plan property” is actually a term popularly used in the real estate market in general to define the type of property purchased from a construction company or developer. 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, together, form a condominium. A Real Estate Development is, therefore, composed of three 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 future residents purchasing the autonomous 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 appropriate RI – registration of the incorporation memorial with the real estate registry office, the Developer may now market the autonomous units of the project, through a promise of purchase and sale agreement, also beginning the works which, at the end of the established term, must be delivered to the appropriate owners, who will form the project's condominium. What is the advantage of buying a property off-plan? Many doubts and insecurity regarding the future of the economy, the suitability of the companies involved or even lack of knowledge regarding the acquisition process, documentation, in addition to the feeling of buying “just a dream”, can discourage the buyer when deciding on this option. However, buying a property off-plan can become a excellent deal and often, the only purchase option for those who want to live and reside in the place they have always dreamed of. This experience, when well planned and guided, can be very advantageous and fully successful. Discover some of these advantages now and start dreaming about your new life in the property you have always wanted: 1) 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 of monthly income, since the payment plan for the amounts related to raising funds during the construction period can be made monthly, interspersed with semi-annual and annual installments, unlike what happens with finished properties, for which payment must be made in full upfront or through a mortgage, which can make the purchase difficult or practically impossible, depending on the income profile or even the amount required for the down payment on the property, which can generally vary between 20% and 30% of the full value of the desired property. In addition, 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 provided for in the standard table for the desired unit. Therefore, the more resources the buyer contributes at the time of entry or during the work, the greater the proportional discount offered by the Developer for this advance payment may be. 2) 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 to pay extra maintenance costs is another decisive factor in this choice and a benefit to be taken into consideration when thinking about buying a property off-plan, since the future resident will not have 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 project of off-plan properties constitute another very important factor to be taken into account, as they are differentials that add greater value to the property, in addition to providing more comfort and facilities to future residents. However, it is essential that, together with the planning and purchase 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 that was promised is in fact delivered. 3) Greater power of choice and versatility of plants in projects Still talking about projects and innovations, another great benefit of buying a property off-plan is the wide range of floor plans available. In many cases, it is possible to change some of the layouts of the desired apartment together with the construction company. Buying a property off-plan offers reversibility options and you can make the apartment of your dreams exactly the way you always wanted.
Floor plan of the middle apartment of Residencial Turmalina, in Sudoeste – Option with reversibility and gourmet kitchen
4) The price and appreciation of off-plan properties The best news, however, may still be yet to come: the appreciation that off-plan properties can experience 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 recovery and stabilization, with interest rates, real estate credit and inflation control driving demand for new properties. In 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 values are subject only to variations in the sector index (INCC) which, in most cases, do not follow the appreciation that the property gains during the same period. An example of this is the new neighborhood in Brasília, the Noroeste Sector, which is currently the neighborhood with the greatest potential for appreciation in the coming years, since the demand for this, which is the first ecological neighborhood in Brazil, is increasingly greater and the value of m² there is still below the value of m² of new properties in other upscale neighborhoods in Plano Piloto, indicating imminent appreciation.
Tulip Park, SQNW 102 – Northwest
However, it is important to emphasize once again that the solidity and security of investing in a business venture reputable company, could be decisive for this gain.
5) More security and less bureaucracy Another positive aspect of buying a property off-plan is that it provides greater security and less bureaucracy. This is because the development 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 projects it has already completed and, above all, the commitment it has demonstrated to its clients and to the city throughout its history. Finally, buying an off-plan property 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, it must be permeated with all possible trust and security for the smooth running of this long journey towards realizing the dream of living in the property of your life. About Emplavi Emplavi has been operating in the real estate market in Brasília for 40 years. Working to build and sell properties that prioritize the safety, comfort and quality of life of its customers. More than 30 thousand properties have already been delivered on time in the best locations in the Federal District. Founded in 1982, the company is the result of a perfect harmony between planning, qualified management and high added value construction processes. Learn more about Emplavi here. Are you interested in buying a property off-plan? Choice an Emplavi. Discover the latest Emplavi launches in the Northwest, Southwest, Águas Claras and Guará:
Cedars Park – 4 Suites – SQNW 306, Northwest Sector
Fig Tree Park – 3 Bedrooms – SQNW 103, Northwest Sector
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Sapphire Residential – 4 Suites – SQSW 500, Southwest Sector
Turmalina Residential – 4 Suites – SQSW 500, Southwest Sector
Montana Residential – 2 and 3 Bedrooms – QS 5, Águas Claras
Prestige Residence – 2 and 3 Bedrooms – QI 29, Guará II
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