Investing in UK off-plan property has been a very popular and profitable form of property investment over the last several years. Some investors (often new to property investment), however have learned to their cost that without diligent professional advice, substantial loses can also occur in the short-term.
Benefits Of Investing In Off-Plan Property
The main benefit that investors gain from off-plan property investment is that only a deposit (often ranging from 20% – 30%) is required to own to 100% the property, and any capital growth during the construction phase will be based on the full purchase price rather than just the deposit. This enables property investors to receive a greater potential return on their investment. Additionally, by investing in a property in its initial construction stage, investors may also benefit from subsequent price increases by the developer as the property nears completion.
Many investors have made substantial returns from off-plan property investment. However off-plan property investment is not without risk. It can also fall in value, with the result that the property is worth little more than the purchase price at the outset of construction, or worse, significantly less upon completion. Some investors have lost substantial amounts of money invested in poorly conceived property developments which did not cater to local demand or needs.
Research and due diligence of the local property market and can militate against such potential short-term loses and help ensure that off-plan property investment is profitable. An investor can help ensure a lucrative return on their investment by gaining a substantial discount on the purchase price.
Can I Ensure My Investment In Off-Plan Property Will Be Profitable?
No investment is risk free. Applying property investment fundamentals can help minimise risk and maximise return. It is important to carry out the appropriate level of due diligence and research. Is the purchase price of the off-plan property attractive to the local market prices for similar types of property? What are the supply and demand factors within the area for the particular type of property in the sales and lettings market? What is the developer’s track record?
Propertyinvestment.co.uk is as a buyer’s adviser. Our service enables our clients to benefit from our experience, contacts and purchasing power to negotiate discounts or financial incentives that might not be otherwise available to a single investor. Our recommended investment property is below the current market value which enables our clients to profit from property.
Call us today to find out how we can help you meet your property investment goals.