How to Sell Off Plan Property: A Guide For Investors

Selling Property Bought Off-Plan: What’s Involved? 

Suppose you’ve purchased a property off-plan, and it’s now completed but you’re ready to sell it. In that case, the process of selling your property is about the same as it would be when selling any property. 

Most investors will have owned their off-plan property for several years before they look at selling. 

At this point, the buyer is free to do as they wish with the property as they have full ownership. 

The only exception is if they’re still receiving assured rental income for their off-plan property. This is a deal offered by off-plan property developers and tends to last for a period of one to two years. 

As long as the investor has owned their property for longer than the assured rental period, they’ll have the title deeds as ownership of the property. 

This means that they’re free to sell it through any sales agent or high street estate agent that they wish to use.  

At this point, the sale of the off-plan home would be classed as a standard property sale rather than an investment.  

Can You Sell an Off-Plan Property Before Completion? 

Whether or not you’re able to sell an off-plan property before completion is mainly down to the property developer behind the project.  

When you buy a unit in off-plan property development, you’ll sign a contract that contains legal information regarding the purchase. 

If the property developer or the property investment company you purchased from stated in the contract that selling the property before completion is not possible, you’ll have to wait until the development is complete before you sell. 

Make sure you confirm this before you contemplate selling your off-plan investment property before its completion date.  

Should I Wait Until My Off-Plan Property Is Complete Before I Sell? 

So, is selling off-plan property before completion even a good idea? 

Even if you can sell your off-plan property before it completes, there are downsides to doing this.  

One of the main benefits of off-plan developments is that they’re offered at below-market value rates.  

Buying the property for a lower amount means that by the time you’re ready to sell, the property’s value should have increased.  

This means you will miss out on huge potential capital growth returns when you sell the property before it’s completed.  

You also miss the chance to make rental returns from renting the property out to tenants.  

For this reason, it’s better to wait for a property to reach its completion date before you think about selling it to really get the most out of your real estate investment.  

When Is the Best Time to Sell an Off-Plan Property After Investment? 

A big part of knowing how to sell off-plan property is identifying the best time to sell.

The best time to sell a new-build home is when the property’s market value has exceeded the initial purchase price.   

Rising market property prices are one of the most important things to monitor when you’re an investor. 

If property values throughout the UK property market are rising, those selling new-build properties will likely see better capital growth returns.  

Next to rental yields, capital growth returns are essential if you’re hoping to make the most of your off-plan property investment.  

If property market predictions are anything to go by, the best length of time to wait before selling your property is until at least 2025, when average UK house prices are expected to have risen by 21.5%, according to Savills.