Real Talk with JKP Ep. 2: Key Questions to Ask Before Buying Off-Plan Property!

Welcome back to Real Talk with John Keells Properties, where we break down the complexities of real estate to help you make informed decisions. In this episode, we focus on a critical aspect of property investment—buying off-plan (during construction).

Purchasing property at this stage offers incredible opportunities, but asking the right questions from your property developer is critical to make a confident, well-informed choice.

Key Considerations When Buying Property from a Developer

1. Has the Developer Secured All Necessary Approvals?

Before a project begins, the developer must obtain legal permits and regulatory approvals. This ensures that the construction is compliant and legally sound.

? What should you do? Always request to see the building permit. This document confirms that the project has met all legal requirements and is authorized to proceed. Verify its authenticity to avoid future complications.

2. What Legal Documents Should You Review?

Understanding the legal framework of your purchase is essential. There are two key documents to examine:

• The Title Pack: This details the history of the land, previous ownership, and any legal obligations. Your lawyer should review it to confirm clear ownership.
• Sales & Purchase Agreement (SPA): This contract outlines the terms of your purchase. Different developers may have variations, so reviewing the clauses is crucial.

? What should you do? Consult a lawyer before signing the SPA to ensure your rights are protected.

3. Is there an Escrow Account for Your Financial Security?

An escrow account is a safeguard that ensures your payments are protected. The funds are only released to the developer when construction milestones are met, reducing financial risk.

?? Why does this matter? Without an escrow account, there’s uncertainty about how your funds will be used. With one, you have added security that payments are managed responsibly.

Final Thoughts: Knowledge is Your Best Investment

Buying property off-plan is a smart financial strategy, but only when approached with careful planning and due diligence.

• Why invest off-plan? One of the biggest advantages is that prices are often lower at the early stages, allowing you to secure a property at today’s price before appreciation sets in.
• Future value: As demand for real estate grows, especially in prime urban locations, early investors often see significant capital appreciation by the time the project is completed.
• Flexibility & Customization: Many off-plan buyers also benefit from customization options, choosing layouts, finishes, and upgrades that suit their lifestyle.

However, not all developments are equal. Doing your research, choosing a reputable developer, and securing the right legal and financial safeguards will ensure your investment remains profitable and secure for years to come.

Stay tuned for our next episode as we delve deeper into the strategies that make real estate the ultimate investment vehicle. You can watch the second episode here!