Off plan properties are developments sold by a developer directly to clients, usually on structured ‘payment plans’ based on property completion milestones, sometimes ranging beyond the property completion date. This is know as a ‘post handover’ payment plan.
Off plan property finance is a financial solution where a buyer can take a mortgage on a property before the building has reached 100% completion. In both forms of payment plans whether payments are scheduled until the property handover, or beyond the handover payment date finance options can provide more beneficial and friendlier towards your cash flow. It’s worth noting, that although off plan property finance is available in the market, it is only for a very limited amount of projects and developers. Please reach out for any additional information.
Handover Payment Plans – Off plan property finance can be availed from the time that the property has reached at least 50% completion and a minimum of 50% of the property value has been paid to the developer. The bank financing the remaining payments will base their payments on the developers payment schedule and validate the amounts due against an official statement of account provided by the developer.
Post Handover Payment Plans – Post handover payment plans can also be financed from the 50% project completion point onwards based on at least 50% of the project finance being paid, the payments from the bank will be paid as per the developers payment schedule up until the point of handover. The bank will then release a payment for total outstanding dues in advance of the remaining payments in the post handover payment schedule, some developers may offer a discount if you settle the balance payments in advance of the scheduled due dates.
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