Thank you and welcome to our resource post for the new website (and my first – ever!!).

We wanted to touch base on a simple subject but one that brings much confusion and debate to both seasoned property investors and like most of us, the average homeowner. The subject brings my personal views into consideration which I’ve developed over the past ten years having worked in both off plan and completed housing sales, but we also want to look at some stone-cold facts.

The real question we want to address here is ‘’Why do people invest in off plan property and what are the benefits’’ but also the questions that surround that question itself, such as ‘’what are the risks?’’ ‘’what are the benefits?’’ and so on. This is no new subject, but we hope you find this content helpful no matter what your position.

Why do people invest in off plan property and what are the benefits?

To start, for anyone that doesn’t know what off plan property is and for the sake of making this article simple (in the most none patronising way possible. I had no idea what off plan meant when I started!), off plan property is property that has not yet been built, one that may still be in the planning stages and build works are soon to commence or already have but haven’t finished (so not completed basically). Saying off plan comes from looking at plans and making a buying decision from these plans without seeing the completed property; hence the term purchasing off plan(s).

Now there are too many factors to consider and ones that can be found all over the internet, but let’s look at some of the main reasons as to why people purchase off plan:

  • Lower purchasing prices. Prices are usually higher once completed giving you a larger capital appreciation.
  • Payment plans. Some developers offer none interest payment plans.
  • The freedom to choose between different apartments, styles and layouts (if you get in early enough).
  • Guaranteed rental yields. A lot of properties sold off plan come with returns that cannot be matched from completed builds.
  • Simple buying process. There’s no chain here, just you and the developer.

So, there’s some clear benefits as to why clients choose to purchase off plan. Over the years, it has been proven to give clients higher returns in terms of appreciation and yield but also offer the flexibility of choice.

So, what’s the catch?

There’s no catch when purchasing off plan but there are risks and as with all investments, when purchasing off plan you must evaluate these risks. We would strongly recommend that you research the following:

  • What is the developers background?
  • What properties have they completed?
  • Is the developer financially stable?
  • Who else is involved with the development of the project?
  • Are the prices and payment plan realistic in comparison to projects of similar type in the area?
  • Is the location good?
  • Where is my money going?
  • Is the purchase contract good?
  • How long is the lease?
  • Can I get a mortgage on the purchase or is it a cash buy?

The list above is purely an example of everyday questions I’m asked however its important to ask these and more to determine whether your choice is logical and most importantly you feel comfortable and confident in the property you choose. Purchasing property for most of us is the biggest financial decision we make in our lifetimes so be sure to do all the right research to ensure any risk is calculated.

Final Thoughts

Purchasing off plan whether for investment or for your own use is a very exciting prospect and can yield huge rewards. The benefits of purchasing completed property can also be extremely beneficial and I’ll be sure to cover this as my blogging skills get better!

Purchasing property for some clients can also be a daunting thought; especially when it’s a first time purchase or simply when we don’t know all the facts it can make it all the more confusing. I don’t believe I’ve covered all there is to know in this article, in fact to cover all bases can be near impossible however I hope I’ve at least shed a bit of light on what’s considered from the get-go. From our side, we want to make purchasing property as informative and comfortable as possible. We would welcome anyone to call the office and speak to one of our experts for further information and we look forward to hearing from you soon.

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