Off-plan property investments refer to those properties that are still under construction. Despite not yet being complete, they are often a better choice for investors than completed builds – especially in popular markets like Leeds investments. Here are five reasons why.
Leeds investments –
1. Lower cost, higher returns
The biggest reason property investors choose to buy off-plan is the much lower cost to purchase. The earlier in the build you decide to buy an off-plan property investment, the cheaper it will be. It can be possible to save tens of thousands of pounds compared to buying a market-ready property.
The lower purchase price means your returns will be higher, both in rental yields and when you come to sell. For example, if you were to make off-plan Leeds investments, the average house price growth in the city of 3.1% is only a small indication of what your returns would be in 12 months or less.
2. You’ve got plenty of options
There are more options available when considering how to grow an investment in an off-plan property.
For a quick return, investors can sell the property before it’s completed – often with excellent returns. Or, investors may hold onto the property and sell in a few years, gaining rental income in the meantime.
3. More choice
There is a lot of freedom that comes with off-plan investments that you don’t get with other property types. New developments have plenty of unit types available that investors can choose from to suit their needs.
A good example of this is the Centenary House Leeds investment opportunity, where purchasers can choose from a range of 80 studio, 1, or 2 bedroom new-build or refurbished apartments.
As well as the size and type of unit, investors can sometimes also have input into how the property is decorated.
4. Increased rental demand
Off-plan investments are always popular with tenants. Renters are attracted to being one of the first people to live in a property. This is especially the case for new-build properties in cities with a high rental market, such as Leeds investments with its 98% occupancy rate.
As new-build properties are modern and up-to-date, they often don’t need any maintenance or repairs either before or during the tenancy. This not only improves your tenants’ experience – making them more likely to continue renting with you – but yours as well.
5. You can stagger payments
Off-plan properties can give investors more flexibility in how they pay for their investment. With other kinds of properties, it can be difficult for investors to pay the large upfront deposit required for many buy-to-let mortgages.
But off-plan developers will allow you to stagger your payments, splitting them over several weeks or months. Some developments even give discounts should you buy off-plan, such as the Leeds investment North Crescent, which offered up to £25,000 off per apartment.
Find out more about Leeds investments
To learn more about investing in off-plan property, contact the Leeds-based investment experts North Property Group today.