Gambia Property Investments: Buying Off Plan in West Africa.
Buying “off-plan” is simply a term used when
you purchase a property, whether house or apartment before
it has been built or in some cases a long time before the
build is actually due to complete.
Why do people buy “off-plan”? There are several
reasons why people buy “off-plan”.
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Investment. Although there is a degree of risk and uncertainty
the discount incentives can out way these. Incentives
vary but many developers will offer discounts in the region
of 5-20% off the market value. This is usually easier
to negotiate if a purchaser is buying ‘in bulk’,
ie: when one person buys more than one unit at the same
time.
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Build program. A development may not be fully build complete
for several months, sometimes years, during which time
property prices have hopefully risen, hence an increase
in capital growth. Once build complete then the property
can be re-valued with hopefully an increase from the original
purchase price. (On average the capital growth is expected
to be around10-20% dependant on geography and market conditions)
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Assignable contracts. This legally allows an off-plan
property to be “flipped”, ie: sold after exchange
of contract, but before legal completion. This is always
clarified by us with the developer before the original
sales are agreed and sold with that in possibility in
mind. Although this is fairly usual, not all developers
allow this, but if so, then it is made clear in the contract.
From the purchaser’s point of view, this facility
allows them to reap the rewards that the capital growth
can bring, without the need to complete the purchase themselves
or having to apply for a mortgage. They can literally
walk away from the deal after having made some profit
and they avoid stamp duty because the lease is engrossed
in the final purchaser’s name.
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Back to Back Sales. This is similar to an assignable
contract in theory, but the only difference is that it
is often required that the original purchaser has the
responsibility of making sure that the second purchaser
completes on the property. The first purchaser has a legal
requirement to complete (with or without the second purchaser).
So for example should a situation arise where the end
purchaser failed to get a mortgage and on completion could
not complete, the person who purchased directly from the
developer would have to, otherwise they are in breach
of contract and the developer could rescind the contract
and keep the deposit and the property.
-
Getting first pick of the prime units. Obvious reason
really - to enable a purchaser to choose the best property
before the build is complete and before the developer
himself increases the price, to take advantage of the
capital growth for himself. As an investment, the emerging
property market in Gambia offers a safe and secure place
to put your money, especially when the world stock markets,
and traditional savings banks are offering such poor returns.
Buying property at the planning stage can boost your investment
profits.
Off Plan Property Investments in The Gambia
Buying property at the planning stage can boost profits.
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We will advise you on new off plan projects as they
come on stream.
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We will provide you with all relevant information on
the developers and planned building schedule including
architect plans and building specifications.
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You make the decision on the level of off plan investment
you can afford.
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We will advise you on the off plan payment schedules
you will need to meet, typically between 15% and 30% on
signing the contract with staged payments thereafter up
to completion.
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We arrange, if required, for you to visit the site personally,
and ask any questions you may have of the off plan property
developer directly.
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We can take care of the re-sale of the property before
the final payment (typically up to 30%) falls due, maximising
your off plan profits for minimal outlay.
Off Plan Properties in The Gambia
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