Are you interested in off-plan investments?

Are you interested in off-plan investments?

Have you ever considered investing in an off-plan property?

Why off-plan investments are attractive

Many people worry about investing in a property before a brick has been laid but if you do your homework and carry out the appropriate due diligence, these fears can be easily allayed.

Investing in new-build properties is a very attractive proposition for experienced investors. After all, there’s no repairing, refurbishing or decorating that needs doing so that’s a big financial initiative straight away not to mention the hassle that’s usually involved in carrying out the aforementioned.

In addition, because these properties are brand new they are going to be more energy efficient, cheaper to run than older properties and they will also come with structural and contractor guarantees. So far so good.

Check out this article about how buying off-plan is making a come back http://www.thisismoney.co.uk/money/mortgageshome/article-2644068/Buying-plan-How-purchase-property-havent-seen.html

Like any investment, there are pros and cons to investing off-plan but for many investors, the positives easily outweigh the negatives. Let’s take a quick look at these pros and cons:

Pros

  • With any off-plan development the developers are keen to make quick sales and therefore offer great financial incentives to do so. You are bound to get a good reduction off the market price if you decide to invest.
  • If market values go up, and given the current housing market situation that’s very likely, you are likely to have made a profit before the property has even been built.
  • Getting in quick often allows you to select fittings such as appliances, flooring and tiles etc so you can add value to the investment straight from the outset.

Cons

  • The obvious worst case scenario is that the developer goes bust. This is pretty rare and even when it does happen, there’s usually another developer that quickly steps in to take advantage so you won’t necessarily lose out. Make sure you get good legal advice when buying off-plan.
  • You have no control about what might get built around your property so values may be affected in the long term or cheaper rental opportunities may arise that presents you with more competition.
  • If the housing market crashes, then you will still have to pay the originally agreed price. Once again, this is fairly rare.

Buying off-plan is no longer considered the risky investment strategy that it once was. Many investors are turning on to the fact that significant profits can be made if you’re prepared to take the plunge and by selecting well-established developers with a strong track record, you are definitely minimising the risk.