What Is Off-Plan Property?
Off-plan property is defined as a type of property that’s not yet been completed.
Off-plan property investment is when an investor buys a property while still in the planning or construction stages. There are many benefits of buying off-plan property as an investment, such as below-market value prices and a better choice of units.
When a property investor invests in off-plan property, they’re buying it while it’s still under construction or in the planning stage.
There’s rising market demand for off-plan property investments in the UK’s key cities due to the benefits they offer investors.
Want to know more about what off-plan means? Ready to explore this investment type in more detail?
Then click the link below to read our helpful blog post on the topic.
Why Buy Off-Plan Property?
So, you now know what off-plan property is. But what are the benefits of buying off-plan property?
Why do property investors choose to purchase new build homes that aren’t yet completed?
In a nutshell, off-plan property investment is considered a strong venture due to three key reasons:
- Off-plan property is often priced at below-market value rates. Investors looking to get more for their money will explore off-plan investments due to the lower-than-usual property prices available.
- Because off-plan properties are new builds, they’re in high demand from renters in the UK who want a brand new property with contemporary designs and features.
- Property investors who buy off-plan property can choose to invest in a wide range of units in one development. This is a luxury not usually available to investors, allowing many to enjoy the freedom of off-plan and cherry-pick the best units.
How to Buy Off-Plan Property
Off-plan properties are a popular investment within the UK property market, but the process of purchasing a property off the plan is a little different than the typical process of buying a residential property.
If you’re a first-time buyer of off-plan properties and wondering how to buy off-plan, be aware that things may be a little different in regards to:
- Finding a mortgage lender for your buy-to-let mortgage.
- Paying for your off-plan property and putting down a reservation fee.
- Viewing an off-plan property and taking a tour.
Where to Buy Off-Plan Property
When selecting a buy to let investment, it’s essential to invest in the right area.
But how do you select the right area? Well, you can do so through property market research.
Some UK cities and regions offer more opportunities, more enticing property prices, and better rental returns than others when it comes to off-plan property.
In the UK, five of the best places to invest in are:
You can learn more about the best places to buy off-plan property and discover why these areas are so popular within the off-plan housing market with our detailed top 10 list.
Just click the button below to be taken straight there!
What Are the Risks of Buying Off-Plan Property?
While there are incredible benefits to buying an off-plan property, you also need to consider some of the risks.
Like anything investment-related, off-plan property comes with an element of risk. Fortunately, the risks and downsides of investing in off-plan property are easily avoided with the right know-how.
Some of the cons of investing in off-plan property are:
- The development could fail to complete due to inexperienced developers.
- The property price of your investment could fall in value by the time it’s completed if you invest in a low-performing area.
- You can’t take a physical tour of the property before buying it, which is an issue for some investors.
If you want to reap the benefits of off-plan property, learn how to avoid the risks, and ensure your first off-plan investment is a success, then check out our guide to the risks of buying off-plan.
Is Off-Plan Property a Good Investment in 2021?
Since the beginning of 2020, the UK property market has experienced a lot of ups and downs.
In 2020, property prices dropped, only to rise significantly thanks to extreme market demand partly fuelled by the stamp duty holiday.
As of 2021, house prices in the UK are at record highs. Many first-time buyers of investment properties are now considering making a buy to let purchase. But is off-plan property a good investment to make in 2021?
With a brilliant forecast ahead for real estate market growth, and ongoing demand for new build properties, now is a great time to purchase an off-plan property in the UK.
To discover why off-plan property is a great investment to consider in 2021, and why it’s a great way to maximise your future capital growth returns, look at our informative blog post below.
How to Sell Off-Plan Property
When it comes to selling your off-plan property, you may be wondering whether the process is the same as it would be for selling a regular residential property.
If you’re thinking about planning the sale of your off-plan property, the following things are worth considering:
- Can you sell the property before the completion date has arrived?
- Will you get more for the property than your initial purchase price?
- Do you have to pay capital gains tax on off-plan property?
- Will your completed property generate a lot of interest from different buyers in the UK housing market?
Find answers to these questions and more by reading our guide to selling an off-plan property.
The Best Off-Plan Properties For Sale in the UK
Our off-plan investment properties are located in top UK areas to ensure the best possible capital growth and rental returns.
We have off-plan purchases priced at below-value rates, with enticing deals offered by the industry-renowned developers we work with.
Browse our latest off-plan properties for sale, and be sure to enquire if you’re interested in investing in 2021 and beyond.