Florida villas – buying off-plan in Florida
Put simply, to buy off-plan in Florida means to buy a Florida home which is not yet built, or is in the process of being built. Buying off-plan in Florida generally guarantees a lower price but there also drawbacks to buying Florida villas, condos and other properties in this way.
Is buying a Florida home off-plan for me?
The cost of buying off-plan in Florida very often equates to a lower purchase price as developers are very often seeking investors to pay for the construction. However, there are generally a couple of years between agreeing to buy Florida villas and them being completed. For those in no hurry to move into their Florida home, there are opportunities for good rates of capital growth during construction.
Many investors choose to sell as soon as possible to take advantage of the lower price and capital appreciation on Florida villas. For others this is a frustrating wait to move into their Florida home.
Comparing the advantages and disadvantages of buying off-plan in Florida
Other than the lower costs, there are several advantages to buying off-plan in Florida, including:
- New technology and modern facilities in new Florida villas.
- Staged payments meaning your mortgage costs increase gradually.
- Choice over fixtures and fittings in your Florida home.
The risks to buying off-plan in Florida include:
- Uncertainty if developer goes bust during construction of your Florida home.
- Finished Florida villas not meeting expectations.
- Inconvenience of having to wait some time before your Florida home is completed.
The process of buying off-plan in Florida
When buying off-plan in Florida you will enter into a staged payment scheme. You will be required to pay a reservation fee upfront and a series of instalments when certain points in construction are reached. The payment scheme will depend on which development you are buying your Florida home in.
You will sign a reservation which commits you to buying off-plan in Florida. This document should detail the purchase cost of property overseas, payment instalments, a full description of the Florida villas and guarantees if the developer goes bust.
Your lawyer should also have negotiated a number of clauses which, if not met, would result in the reservation fee paid after agreeing to buy off-plan in Florida being returned.
If you are borrowing money to buy off-plan in Florida you will need to negotiate for the mortgage to be released in stages. There are pitfalls associated with buying Florida villas in this way but it also represents some of the best opportunities for buying a reasonably-priced Florida home.
