Every investor is looking for a property that comes with zero risks. This is never guaranteed, but more and more people are realizing that by buying property off-plan, they can give themselves the best chance of success.
Surely, though, this is backwards? Buying off-plan means securing a property midway through or even before construction has started – don’t you want to see what you’re buying first?
This may have been true in the past, but with today’s market being so competitive, moving quickly is paramount. Of course, this is just one of the advantages of buying off-plan.
After speaking with our investors, we’ve compiled some of the top reasons you should consider buying off-plan property.
One of the standout benefits of buying off-plan is the access to property at below market value.
A property purchased today may not be due for completion until 2021. That means you could have two years of capital growth before you’re delivered a brand new property. This is a massive advantage if you’re looking for an investment you can turn around quickly.
Furthermore, some developers offer additional discounts to early investors. That means it can really pay to be the first person to buy.
Technology is impacting property development in two fundamental ways. Firstly, improvements in digital marketing makes understanding what you’re buying easier than ever.
No longer do you have to stand in a concrete frame and imagine what it could be. Detailed CGIs and regular updates online mean you can track the progress of your property easily and know what the finished product will look like.
If your developer also has a lettings and management service, then this tech also plays a substantial part in attracting high-quality tenants quickly.
Secondly, investing in a new build usually means your property can be kitted out with the latest SMART technology. This kind of innovation is in demand by young professionals and first-time buyers, who are environmentally conscious, tech-savvy and want to control everything via their phone.
Typically, buying property comes with the choice of accepting someone else’s decor or paying to put your own stamp it. Buying off-plan gives you a third option to tailor your property’s design to one that suits you, while it’s being built.
This is important as it allows you to put the property on the market immediately after completion, whether you’re looking to attract buyers or tenants.
Plus, developers are typically pretty flexible on the design options they offer, with an option to suit every budget. You’ll also likely find that your chosen developer can organise a furniture pack for you that makes your property ready to move into on day one.
One of the great fears of buying a property for yourself or as an investment is that it comes with loads of skeletons hidden in its closet. After all, no one wants to pick up the keys, only to find the roof needs replacing six months down the line.
Off-plan properties are brand new, so you shouldn’t expect any major costs anytime soon. Either way, in the event that something does go wrong, you’ll have likely received a structural warranty from the developer for up to ten years.
If you’re investing, this is a big weight off your shoulders, knowing that you don’t have a massive bill waiting around the corner. Of course, the details of this warranty will vary from developer to developer, so check the small print.
Buying off-plan is mutually beneficial for both buyer and developer. You get a great price on a new build and the developer has the peace of mind of one more property being sold.
For that reason, both sides want to make the buying process as simple and short as possible. You’ll usually find that developers have high-quality solicitors and other partners they can point you towards if you need one, and as it is a new build it’s unlikely you’ll be delayed by any problems uncovered when checks are conducted.
Plus, you’ll be dealing with professionals who understand the buying and selling process, so you won’t end up waiting on the seller to get their house in order… no pun intended.
When many people think about off-plan property, they often think of the time they have to wait for the build to complete as a negative.
In reality, though, this is a major advantage for nine out of ten investors, as it gives you plenty of time to organise your purchase. This eliminates the mad rush to complete all the paperwork that usually comes with purchasing property.
This is especially useful if you need time to restructure your existing portfolio and sell other properties.
One of the greatest advantages of off-plan property is that it’s not hard to find. Cities like Manchester and Liverpool are currently benefiting from billions of pounds of public and private sector investment.
That means you’re not just limited to a handful of properties on Rightmove when deciding what to invest in next. Instead, you can put together your dream spec of property and be confident that you’ll be able to find it.
Going to view an off-plan property part way through construction typifies this. Don’t like the apartment your originally enquired about? How about the one across the hall, or the one two floors up? The choice and ability to tailor off-plan property to your needs is outstanding.
Of course, when buying off-plan, the property is only as good as the developer you choose to invest with. That’s why we always encourage investors to take the time to get to know the developer, not just the property.
If you’re interested in exploring an off-plan investment opportunity, you can get in touch with our team to learn more about us and our developments.