Buying Off Plan Property
For a long time buying off plan property has been a secret known only to the professional property investor. Typically property developers and builders will sell all or part of their development before the building work has been completed, known as selling the property off plan. In order to generate sales and to fund further development, the developer is prepared to discount the off plan property by as much as 20%.
Buying property off plan significantly reduces the selling costs for the developer, especially when sales are made without the need to build a show home, so the developers can pass these savings on to you. For some developments, especially in Spanish property hotspots, demand is so high that the only option is to buy off plan property.
Off plan property investment
Buying off plan property as an investment is very common. By buying off plan property the investor take advantage of greatly reduced prices and, once the property is completed, can sell it for a profit. Off plan property investment can be risky as there is always a chance that the property will not sell once completed, but by taking note of property hotspots it is possible to minimise the risk.
Private buyers - buying off plan property
Although buying off plan as an investment property or as buy to let property is most common, our off plan properties are also available to the private buyer. Although the completion date of off plan property may be six to 18 months away, the initial investment can be relatively low so your capital is not tied up for lengthy periods. Typically you can reserve your off plan property online, for as little as £500-1000, plus valuation and disbursement fees. Exchange is normally within 28 days (in order to secure the discounted price). Developers will require a 5-10% deposit at exchange. Although you have made this initial investment you can be secure in the knowledge that your property is already worth an additional 10-20% and is increasing in value inline with house prices. It also gives you time to sell your own house and get your mortgage and finances in order.
