Consider Off-Plan Property
Off-plan property is a property that is available to buy despite not being finished yet. This means it can either be under construction still or is only in the planning stages.
On the surface, this can understandably seem quite risky.
However, so long as you take the time to research, off-plan is one of the more ideal forms of investment – especially for those seeking newly-constructed properties.
Buying off-plan is often cheaper in the UK than buying an existing property because developers will usually offer up a discounted sale price to counteract any underlying reservations on the investor’s part.
If you’re also patient enough, once construction is completed, you’ll be left with a shiny, brand-spanking-new building that has not been lived in or destroyed by previous tenants. All of which is sure to be an attractive quality for any prospective tenant looking to move in.
Buying Into the Future
There has been an increasing demand for housing as of late.
However, with this need continually being outweighed by supply, there is still a yearning for more high-quality rental accommodation.
Consequently, this makes new build homes one of the most popular assets in the UK – specifically for those purposely built for renting.
House prices in the UK have made things even more difficult for first-time buyers to get onto the housing ladder, meaning many are renting until much later in life.
Recent changes in lifestyles have also shown increasing signs of people choosing to “rent for life”.
People enjoy more flexibility and being able to move quickly when new career prospects present themselves. Another rising trend is young people leaving London to relocate elsewhere, which often involves renting.
High Rental Demand Means High Rental Yields
One of the most significant selling points of a new property is its aesthetic benefits – i.e., its fresh, modern design.
Those who favour a more contemporary look in their home, such as students or young professionals, are often drawn to stylish new-build houses and apartments.
This is excellent news because property investors need high rental demand for their venture to succeed.
By purchasing a property considered desirable by their target tenant, interest from renters will be higher.
And, with increased interest comes the potential for increased yield.
New-build rentals in the North-West region are estimated to generate an average yield of 4.4% for investors – a significant bit higher than the national average of 3.7%.
Alongside this, if you choose to go down this route, as off-plan properties are cheaper to buy, it also means that there is a stronger capacity for capital growth, meaning you can expect an even stronger capital percentage increase over the years.
Rightmove have recently predicted a property market boom following a record-breaking year in 2021, meaning now is the perfect time to get started.
Are you interested in investing in a new-build property? Discover more about this investment type and find out whether new builds increase in value over time by reading our helpful blog post.
Contact us today or check out our 2022 Guide to Investing in Off-Plan Property for more information.