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 while it’s still in the planning or construction stages and hasn’t yet been 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.
Off-plan properties are considered one of the most effective investment options when it comes to capital growth. When you purchase an off-plan property in an area with a lot of potential for capital appreciation, the chances are that by the time your property is ready for tenancy, it will have significantly increased in value. At RW Invest, all of our off-plan properties are located in UK property hotspots — Liverpool and Manchester. Both these two cities have seen huge house price growth over the years, with the north-west exceeding any other UK region. This property price growth isn’t set to slow down any time soon, with predictions for the north-west region to see a growth of 21.6 per cent over the next five years. If you buy off-plan property in Liverpool or Manchester, you increase your chances of making lucrative returns on your investment through capital growth — even more so than you would with a traditional investment.
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-builds, specifically 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.
One of the final benefits of buying off-plan property is the freedom that comes with this investment type. Because these properties haven’t been finalised, investors can pick and choose the best units. For instance, investors can research the different units available and consider whether the dimensions and specifications will be suitable for their investment goals.
If you’re keen to buy off-plan property in Manchester and Liverpool but unsure whether this investment type is for you, please get in touch. With all of our off-plan developments, we help investors get a good idea of how the finished property will look, thanks to advanced technology. With the help of computer-aided imagery and virtual reality, we can showcase the desired outcome of our properties to our tenants to help them make a more informed decision.
When it comes to buying off-plan property in the UK, look no further than RW Invest for high yields, superb locations and affordable prices.