Buying off the plan may be cheaper, but it comes with its fair share of downsides.

Off-plan property may be cheaper because you’re buying a property before it has even been constructed, but there are three major risks you need to be aware of before taking advantage of the lower selling price. 

1. You can’t settle - when you first sign a contract, you may not have a problem with securing finance, but things can change. Legislation, for example, can become tighter on lending. 

2. Poor build quality - A new building has no history on which you can base your decisions. In fact, a lot of new buildings have major problems, costing both builders and owners a lot of money.

3. You will lose money - You pay premium when you buy brand new, so it can take a good number of years before the property is worth what you paid for it. 

   
   

Watch the complete interview above for more of Veronica Morgan’s insights on buying off the plan.