After all the changes the pandemic has brought, many people wonder if this is worth it. Yeah?
The pandemic has triggered a host of behavioral and investment changes. So it’s no wonder people are still wondering if it’s worth buying an off-plan property in 2023.
The answer is not entirely simple, but in general, it is easy to see that investing in a property always brings security and also offers many opportunities.
The truth is that owning your own property is the dream of many Brazilians, but uncertainty in the economy, inflation and high interest rates can make this type of family plan very difficult to implement. However, the biggest suspicion is about the purchase of a factory apartment. Really worth it?
What to consider before making a decision
Before investing in a plant property, it is essential to keep in mind that you cannot be in a hurry. Delays are common and fees tend to be more expensive after the keys are handed over. Therefore, planning is essential.
When you buy a property off the floor plan, you are actually helping the builder finance the costs of the work, which typically takes an average of three years to complete.
Generally, the buyer makes an initial payment of 30%, which is divided into monthly installments, with some additional semi-annual or annual installments, this varies according to the type of contract.
The remainder, generally called the “balance of debt,” follows some financing arranged by the buyer and is adjusted with some reluctance.
The reboots are constant and the values are corrected by three indicators:
- INCC (National Index of Civil Construction Costs) for the initial payment and balance owed;
- IGP-M (General Market Price Index) for completion and delivery of keys;
- TR (Reference Price) for the period after handing over the keys.
What are the real advantages of buying from the factory?
The main advantage is the appreciation of the property, especially if it is in a good area. It is an investment that is usually valued a lot in the first five years – which is usually also the period of the guarantee that the builders give to the property.
Also, by buying off-plan, you can customize the property to your personal taste, especially the doors, tiles and cladding.
And what are its drawbacks?
Here again planning is crucial as sales are often low and the finished property ends up selling for less than it was on the scheme. With the law of supply and demand, prices fall and those who invested in the factory lose out.
Another common drawback is construction delays, which can be very common depending on the builder’s track record. Research the construction company’s other construction jobs and see if they tend to be late. This can make a big difference if you plan to live on the property.
There is another drawback that often disappoints the buyer: the delivered apartment is not at all like what was presented in the beautiful mock-ups and 3D models. But this is a risk that anyone who buys from the factory is operating normally.
What happens if the builder does not deliver on time?
Since delays are common, the problem here is measuring the size of the delay. According to the Completion Law (No. 13,786/18), if the works are delayed up to 180 days from the contract, there are no penalties for the construction company. After this period, the buyer receives 1% of the amount actually paid for each month of delay.
The other option is to request the termination of the contract and receive the full amount already paid for the contract. But if the buyer withdraws from the purchase without delaying the delivery of the work, between 25% and 50% of the amount already paid to the construction company will remain.