As construction commences or continues, the sale price of the property will increase. This is because people willing to buy the property have more to go on than just drawings and graphical impressions of the property. With each phase of development, you can expect the price value of the property to increase with a minimum of 8%.
Typically you should sell the property just before its completion, to a secondary buyer who is willing to purchase property for rent or resale. You will then recover your initial investment along with all the accrued interest.
To protect any payments you give to the developer in an off-plan investment purchase, ensure that the property developer gives evidence of insurance or bank support involved in the property construction. This will reassure you that regardless of whether the property is finished or not you will be able to get any payments you make refunded to you. From the gross profit, you can expect a deduction of tax and agent fees after which the rest is a profit on your initial investment.
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