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Why You Should Invest In Off-Plan Property

May 8, 2024

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Key Highlights

UK
  • Here's a few reasons on why you should make your next property investment a UK off-plan property, including tips on how to get started.

 

Thinking of investing in UK property developments? One of the best ways to get to grips with an exciting industry is to invest in UK off plan property developments.

For first time buyers, investing in off plan property can be beneficial as it removes a lot of pain points and work for investors. Off plan properties are often purchased through property investment agencies which act as a broker between property investors and UK property development agencies.

Here is a short guide on why buying off plan developments is a fantastic way to invest in property in the UK and how to go about it.

Why You Should Invest In Off Plan Property

Here are a few reasons and advantages of investing in UK off plan property:

 

  1. Capital Appreciation: These properties tend to accumulate value quickly. They are often sold below market value of other properties in the area then will quickly appreciate in value while the property is being built. Investors could sell the property immediately after completion and still make a profit.
  2. Modern Design And Amenities: Often, quality tenants (like students and working professionals) tend to look for high quality rentals that suit their needs and come with a wide range of amenities. Off-plan properties are built to a high standard and will come with a range of amenities that are attractive to high quality renters, such as gyms, cinemas, concierge, and more. This means the property can net a higher rental value. The fact that the property is also brand new also means that there are fewer bills for maintenance and repair.
  3. Tax Benefits And More: There are a number of financial benefits to investing in UK off plan property. Namely, investors do not have to pay interest on the mortgage for the property until after the building has completed. 
  4. Flexible Payment Plans: A lot of property developers tend to offer flexible payment plans and even lower property prices to ensure that the properties are secured and sold prior to completion. This means investors can make a sure fire profit early on and stagger the payments.
  5. Diversifies Your Portfolios: If you’re already an investor with a number of properties in your portfolio, adding off-plan property to it can offer diversification, which can help spread risk.



How To Invest In Off-Plan Property

Not sure how to get started? Here are a few steps that you need to follow.

  1. Research: Like with any investment, research is king in the property world. Research markets, locations, trends, rental yields, tenant demand, and anything else that may affect the property’s value and rental income.
  2. Find A Developer: To secure an off-plan property, you need to purchase through an investment property agency who acts as a middle-man between a property development agency and the people who purchase the units. Careful consideration and research should go into which property investment agency you choose. Look at track records, reviews, past developments, and the company’s reputation in the industry.
  3. Assess The Property: While it hasn’t been built yet, you can still assess the property. Review plans and specifications, and look into the materials used to make sure the apartment is of a high quality. Also look at any furniture packs if available. Consider factors such as the property’s design, layout, amenities, and potential resale value.
  4. Risk Assessment: Any investment is not without risk: property is no exception. Delays for off-plan property can include delays in construction, changes in market conditions, and the potential for the final product to differ from initial expectations, along with other risks you would get with pre-built properties such as bad tenants and damage.
  5. Finance: Work out exactly what your budget will be and what your financing options are. Make sure this is not only done to the decimal point, but also include some shortfall in case of emergencies.
  6. Practice Due Diligence: Seek legal advice to p-rior to signing any contracts and associated documents. It is crucial you understand your rights, obligations, and commitments.
  7. Check Progress: Your chosen property investment agency will keep you updated on progress, so make sure to keep an eye out for updates on how the property is coming along. It also gives you an opportunity to address any concerns or find out about delays.
  8. Completion and handover: Once the property is completed, conduct a thorough inspection to ensure that it meets the agreed-upon specifications. Arrange for any necessary repairs or adjustments before taking possession of the property.

 

Summary

North Property Group is a property investment and lettings agency with a focus on premium and off-plan real estate in the UK. We secure exclusive deals with some of the best developers operating in the country to deliver these to investors.

We don’t just secure great deals with leading developers; we can also offer you quality advice and guidance. North Property Group can also manage your investments for you, offering a lettings management service. Book a free consultation with us today to begin investing in premium uk real estate development and UK off plan property.

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