2022-02-21 | What are the advantages or risks of buying a property off-plan in Berlin?
What are the advantages or risks of buying a property off-plan in Berlin?
Buying an apartment ‘off plan’ means signing a contract to purchase an apartment that is yet to be built or completed. It is often the case that many of our clients wanting to purchase off-plan properties don’t have German as a first langauge and don’t reside in Berlin themselves.
The greatest advantage of buying an off-plan property through Black Label is the fact that it is a highly safe and transparent process. → We are working for you as our client throughout the entire process, taking care of the proceedings for you throughout the entire development while also keeping you in the loop at all stages.
One of the best things about purchasing an off-plan property:
One of the best things about purchasing an off-plan property is the fact you are purchasing directly ‘from the baker’. This ultimately means you get a huge amount of choice and allows for flexibility, not only regarding which apartment you wish to purchase, but also concerning more detailed aspects such as the floorplan (depending on the stage of construction), flooring and tiles etc. A concern that some people have when considering buying off-plan is that the builders won’t deliver to the specification. The specification details however will be clearly stated in the contract and therefore in the rare case that the final product doesn’t exactly match your specification, you will be able to sue.
Brand new properties are also going to be kitted out with the most modern facilities, such as with elevators, underground parking and built to the latest energy efficency standards, often things which you won’t find in many of the older apartments in Berlin. If they are important to you, buying off-plan is a great option.
From a financial perspective, purchasing off-plan means payments are made in 5 to 7 stages, making the process incredibly secure with each stage having to be independently signed-off that it’s up to the correct standard before you have to make the next payment. It may also be easier to get a mortgage for an off-plan property. Another great thing about off-plan properties is the fact that you are likely to get a significant discount off the purchase price if you buy early. There is usually a 5-10% price increase from the first to the last day of the development being built, so you will obtain capital growth on your investment while you wait while for construction to be completed. If you get in on a project early it is highly likely that you will get the best deal.
A final and understandable concern that people have when buying off-plan is that there will be construction hold ups which result in their property not being completed on time. This is what the ‘late delivery clause’ is there for in the contract; you have the right to penalize the sellers if they fail to deliver on time.