If you consider yourself clued up on the UK property market, chances are you will have heard of off-plan investments. Buying off-plan property means to purchase a property that’s not yet completed. This may seem a confusing concept to some, but with a bit of research and understanding, it’s easy to see why off-plan properties are such an appealing investment option. Here are some of the benefits of investing in off-plan, and reasons why you should consider this for your next property venture.
What is off-plan property investment?
Off-plan property investment is when an investor buys a property while it’s still in the planning or construction stages. Unlike other property types, investing in off-plan means that the buyer can only see how the property will look through computer-generated imagery and other technology.
How to buy off-plan property
To buy off-plan property, you first need to find the right property for you. Look online for developments based in your preferred location and priced within your budget. Then, find out whether you’ll be eligible for a buy to let mortgage or whether you’ll need to pay the upfront cost.
A lot of the time, it can be difficult to get a mortgage loan for off-plan properties. This is usually down to timing issues, with most mortgage agreements only being valid for six months. Therefore, if the development doesn’t complete by this time, the buyer will need to re-apply which can be a time-consuming process. This is part of the reason why we require our investments to be paid in full rather than with a mortgage.
Once you find an off-plan property of ours that you’re interested in buying, we’ll provide you with all the details and information needed to make a decision. Although we can’t give you a physical tour of the finished property, we can provide you with a look at the planned outcome with the help of virtual reality. By using computer-generated imagery and VR technology, we can let potential investors see how the property is expected to look upon completion, helping them make a more informed decision.
So we know that off-plan investments allow you to make better gains on the value of your property, but what about price? Buying off-plan property in the UK is often cheaper than buying other investment types such as a refurbishment property. We offer our off-plan developments at below market rates, making the investments a lot more affordable while also maximising the potential for growth.
Our Bridgewater Wharf development, for instance, is located in a prime central Manchester location and priced from just £134,995. Within proximity to MediaCityUK and featuring luxury private balconies, communal garden areas, amazing river views and more, Bridgewater Wharf is likely to attract the most sophisticated of tenants. Similarly, our One Baltic Square development can be purchased from £121,950. This off-plan development is based in Liverpool’s Baltic Triangle; an area voted the ‘coolest place to live’ by the Times. This makes One Baltic Square an excellent choice if you’re keen to buy off-plan property in Liverpool. Both of these off-plan developments have a high likelihood of increasing in value by the time construction is complete, and offer attractive rental yields of 6 and 7 per cent.
Off-plan property investments tend to perform well in terms of attracting rental demand. The majority of tenants find new-builds desirable as they value being one of the first people to live in a property. Since new-build off-plan properties are completely modern, they also tend to not need any maintenance or repairs prior to tenancy. Investing in an off-plan gives you peace of mind that tenants will always be interested in renting your property, ensuring a consistent cash-flow of rental income and lower void periods.
In Liverpool and Manchester, there’s a lot of demand for rental properties from young professional tenants. If you buy off-plan property in Manchester, you’ll want to make sure you appeal to this target tenant to attract as much demand as possible. Research suggests that millennials are a lot more likely to buy into products or services if they have an eco-friendly quality. Since new-builds are naturally more eco-friendly due to using less energy, investing in an off-plan property will appeal to the environmentally conscious tenant.
If you’re interested in investing in your first off-plan property or are maybe curious and want to find out more about our available properties, get in touch today. Our property experts are on hand to offer you advice about the best off-plan property for you, offering you guidance every step of the way.