Written by Nawaz Peerbux
Covid19 has brought an unexpected season of turmoil within all industries and the property market has not escaped. Mauritius started the year with confidence and continued its boom in real estates from both foreign and local investors. However, as the cat has been thrown amongst the pigeons and all norms are becoming estranged, it has left us wondering what the best way is to move forward. Buying a property is not as simple as buying your next pair of shoes, it requires a lot more thought, especially in this current climate.
With regards to, off plan property purchases, it has seen tremendous growth over the past decade and there are several weighty advantages for doing so, which will ease the pressure from the uncertainties brought to us from this pandemic. We are riding a wave, where we know there is a shore but cannot quite see it. This being the case, you can take steps which offer more comfort during this period of blurred vision.
1. Healthier Cash Flow.
Off plan purchases allow a property to be secured without having to part with the whole amount. This alone is a huge incentive, as you can choose your ideal property for a fraction of the price and still have the security, with the balance of funds in your account, for the fear of the rainy days. Along with this, you can enjoy a healthier cash flow and drip feed the purchase of the property over the course of 18-24 months depending on the construction terms of the project.
2. Discount for Off Plan Properties
We all like to save a penny or two and off plan gives that opportunity. Developers selling properties usually offer a discount; it is the sales that get the project off the mark. This is even more applicable to the first few sales as the developer can be desperate to gauge the market’s reaction and gain confidence in their product. Buyers can take advantage and play on this weakness making offers where they can make further savings.
3. Capital Growth
If for any reason, you decide you no longer want to proceed with the purchase from the time of reservation up until the handing of the keys, you are not in any way stranded and burdened with a property you do not want or cannot afford. You can sell the property yourself or with the help of the developer for a higher price which you bought it. As you may have received a discounted price you stand to make a tidy profit from the capital growth of the property.
4. Make changes to your Property
Beauty is held in the eye of the beholder, and what you may class as “nice” may be seen as “not so nice” by another. Off plan gives you the chance to throw a splash of your personality and design to the interiors. If you keep good communication with the agent throughout the construction, some changes are more than likely possible where you could end up with a tailor-made property with our ideas.
5. Compliments the Tourism industry
Last but not least, the economy in Mauritius and across the globe has absorbed a heavy blow from the 3.4 billion people worldwide lockdown. It’s inevitable that it will leave its impressions on the tourism industry which has been the primary income for the island with renowned white sandy shores and the infinite shades of turquoise waters. But it is sooner or later the gates of Mauritius will be flooded with tourists wanting to experience a little piece of this paradise.
Off plan buying is the perfect choice for one of the safer investments allowing time for the tourism industry to heal. In 18-24 months from now, we hope Mauritius will be welcoming just as many, if not more tourists, which will increase your rental pool significantly and allow you to reap the rewards of your hard-earned investment.