Off-plan properties have been gaining momentum in the last decade as more people realise the potential for capital growth and appreciation. Thousands of investors and homeowners see the countless benefits of buying UK off-plan property, especially if you have a significant amount of money to invest. While off-plan properties are known to be a risk, likewise with any investment, you have to consider how much the risks outweigh the potential benefits. However, keep in mind that while you may think things can go wrong, they can also go right and leave you earning a large sum of money without a lot of effort or time.
Are you interested in learning more about why you should invest in UK off-plan property developments? Below is a quick list of reasons why you should consider investing and spending your savings on a property. Even if you’ve never considered becoming a property investor before, you can start investing and before you know it become successful!
What is off-plan property?
When you buy an off-plan property, it means you are committed to buying a property before completion. Sometimes it often means you’re buying a property before it’s even started to be built; this is when you get the best offers on pricing. However, it is possible to purchase a property when it’s nearly finished since it’s still seen as off-plan. It’s considered a riskier purchase when compared to other property investment types as it’s not finalised and there is no guarantee the property will be finished (although most of the time it is). Many property companies offer great prices for off-plan properties such as RWinvest who have had multiple successful off-plan properties across the country, which have earned investors thousands of pounds.
What are the benefits of buying off-plan?
- It is cheaper than other property investments
Off-plan properties are less expensive than already built properties, as developers often offer a discount to make up for the risk of buying something that isn’t built yet and having the inconvenience of not being able to make a return on the investment until it is completed. This is very good for you as an investor as it means you’re saving money, but it’s also good for the developers as if they confirm the sales early on, they have financial backers to go ahead with the project.
- Holding the property price and locking it in
The discount you get with an off-plan property should be seen as a bonus in that if you want to keep hold of the property in the long term – you’ve been able to get it for a more affordable price. What’s great about this is that you may have properties within the same area going for a lot more than what you paid. Equally, if your property is built and there are units left to be purchased, similar investors will be spending a lot more than you did for the same unit in the same apartment building. The property will continue to rise in price as more regeneration and restoration happens in the area, so it’s always a positive to get in while all the work is still being down, and properties are not completed. Obviously, it’s essential to do your research before buying off-plan as you want to get something in a rising market (so that prices go up and you benefit from capital growth).
- The properties are modern and expertly designed
With the newer off-plan properties, the design is always professionally finished with modern interiors. Purchasing a buy to let development in its off-plan stage will mean you get the full package, sometimes including furnishings and beautifully painted walls and flooring. Off-plan properties are very popular with young professionals and students as they’re new and exciting. Plus, these properties often come with amenities and facilities such as rooftop gardens, communal study spaces and pools.