Off-plan investments are some of the most popular types of property ventures in the UK. But what is off-plan property? Buying off-plan is the process of purchasing a property that is yet to be built or is under construction. This type of investment is advertised to investors using advanced technology known as computer-generated imagery, which is created to show potential buyers what the finished product should look like.
If you’re an avid investor, you may have already pondered the possibility of investing in off-plan property, but due to scepticism, you haven’t gone through with it. This might be due to several misconceptions associated with off-plan investments that scare investors away, and you’re likely to have a number of questions to ask when investing in off-plan property. To clear up these false impressions and answer any common questions, we’ve created the following guide which will outline everything you need to know about off-plan – your next investment.
What are the benefits of buying off-plan property?
Purchasing off-plan property can be seen as a gamble, but when you think about it, every investment you make is a risk. There are actually numerous advantages to investing in off-plan property that ultimately outweigh the risk.
One of the main benefits of buying off-plan property is that you can receive substantial discounts off the purchase price. Many investors have received up to 15% off the existing price, which has helped them start their investment with a high financial stronghold. These discounted prices are also ideal for first-time investors who want to start small, as buying off-plan means they don’t have to break the bank to get involved in property investment.
What many investors don’t realise is that off-plan investment can provide you with automatic returns, unlike other investments where you need tenants to live in your property to generate a substantial income. Instead, an off-plan investment allows you to start generating profits even while the property is still under construction. This can help you save up a significant amount of capital, which can be used for personal use or put towards any property fees, such as maintenance or legal costs.