International Real Estate Investment | Eye on Worldwide

How to Save Money Buying Off Plan Developments

Posted on 10. May, 2009 by EOW Team in Buying Abroad, Investing Abroad, Owning a Property Abroad

1. Buy early in the development.

Most loans given to developers have some pre-sales component to them. This means that the developer has to reach certain sales goals throughout the project for the bank to release the developer’s next stage of money. If the developer doesn’t reach theses goals in certain time periods the bank can withhold money and the project could be temporarily stopped. Getting in early on an off plan development can save you 20% or more off of the developer’s list price because the developer is eager to reach these goals set by the bank and is usually very willing to work a deal.

2. Buy with a friend.

Let’s face it, when you buy anything in volume you get a better price and real estate is no exception. If you are fortunate enough to know of a colleague, friend or family member that is interested in purchasing in the same development, then approach the developer together, and you certainly be able to negotiate a further discount on your purchase price.

3. Cash = Discount.

If you don’t need financing to make your purchase, you have room to negotiate an even further discount. Developers love cash. If you can put extra cash on the table, in some circumstances, the developer can represent it as multiple sales which will enable him to reach his goals with the bank even faster. If you have done your research and you are comfortable with the reputation of the developer and the other professional parties involved, then negotiating a large cash down payment will give you the bargaining power you need to get your purchase price even further reduced.

Anthony DeFreitas is an internet marketer specializing in Barbados real estate. You can find more information on Barbados real estate at http://bimre.com

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