4 Reasons to Consider Off-Plan Property Investment
Nov 07, 2021 20:17
With almost everyone seemingly getting involved with cryptocurrency, NFTs and the ol’ reliable stock market, it’s clear that many are hungry to engage with investment opportunities.
You already know the obvious ones – in fact, they’ve already been listed – but one of the most popular routes is investing in property. In the UK, for example, there has been a steady rise in both house prices and demand, which has spurred many to consider getting involved.
There are many strategies for property investment, but probably one of the most affordable routes is buying off-plan property.
This essentially boils down to buying a property in the design/construction phase before it is actually completed.
Whilst this may seem like a colossal waste of time- and, more crucially, money - if you play your cards right, it could, in fact, be the wisest decision you ever make as an investor.
Here are five reasons to consider UK off-plan property investment.
You’re buying into the future.
If you haven’t already noticed, there has been an increasing demand for housing. The population is expected to skyrocket towards 75 million within the next 20 years in the UK alone.
However, with this growing need continually outweighing supply, there is still a yearning for more high-quality rental accommodation.
Consequently, new build homes are some of the most popular in the UK (for both investors and prospective homeowners alike).
What this means for off-plan investors is, if they’re patient enough, once their building completes construction, they’ll be left with a shiny, brand-spanking-new building that has not been lived in or destroyed by previous tenants – which is sure to be an attractive quality for anyone looking to move in.
Another side effect of this patience is that the property can grow in value, even before it reaches completion.
As stated, this strategy is probably one of the most affordable routes into property investment.
Buying off-plan is often cheaper in the UK than buying an existing property because developers will usually offer up a discounted sale price in an effort to counteract any underlying reservations on the investor’s part.
Due to the booming market demand at the moment, most investors would be hard-pressed to find properties available to purchase at the asking price, let alone below.
Another highlight of off-plan property is the level of freedom that comes alongside it.
Basically, as these properties are unfinished, investors can pick and choose the best units to put their money into.
Say you have very specific features in mind for your ideal property.
An apartment with a balcony and a view, or en-suite bathrooms, for example.
In these cases, your best bet will be looking at off-plan property.
Staged Payment Plans
For many, the most significant setback is going all-in on a deposit for a property. The assumption of buy-to-let investment is that there is often pressure to pay a hefty sum upfront and with no exceptions.
Of course, not everyone has all of the money needed for investment straight away.
When buying off-plan, however, you have the option to split the payment into separation stages – meaning investors don’t need to pay the entirety of the fee until the development’s completion.
What this ultimately means, though, is that you’re left with a simplified buying process and fewer worries concerning mortgage repayments further down the line.
To put it simply, less stress and (hopefully) more success.
With the UK market boom looking to extend into the foreseeable future, now more than ever seems like the best time to get involved.
Do your research and consult the experts, don’t rush in and most importantly: try not to panic!
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