If you’re not already familiar with the term, off-plan property investment is when someone buys a property before it’s been completed. This type of property tends to still be in the development or planning stages when it’s purchased. While this might seem a confusing prospect for some, there’s actually a lot of benefits to off-plan property investment. Here are some reasons to consider this for your next property venture.
There’s better potential for growth
One of the main reasons that off-plan investments are so appealing is the fact that they have such a high potential for capital growth. When built in prime locations, new off-plan developments can increase in value before they’re even complete. This means that even if you decide you no longer want the property soon after it’s been completed, you’re likely to be able to sell it for a higher price than the purchase price. Many property investment companies put careful consideration into the locations of their off-plan developments to ensure the best rates of growth. One example is RW Invest, who offer off-plan investment properties in high-growth neighbourhoods of Liverpool and Manchester, such as those within regeneration areas.
They’re more affordable
Off-plan properties tend to be offered at below-market rates by developers and property companies as a way to entice buyers. This makes them the perfect option if you’re looking for a more affordable investment option, which still offers a lot of potential for rental yields and capital growth. If you’re sure about a certain area you want to invest in but are put off by the price of existing properties, purchasing off-plan could be for you. To make your investment even more affordable, look for a property type which is already typically lower priced like student accommodation.
A lot of tenants tend to be drawn towards new build properties, favouring the fact that they’re one of the first set of people to live in the property. With off-plan properties, you have even more of an edge, as nobody but your first tenant will have ever lived there before. Other desirable qualities include the fact that they come equipped with modern designs and facilities, meaning there is no need to decorate or complete any maintenance before a tenant moves in. Many new developments are even built with things like smart lighting and eco-friendly features, helping them stand out compared to older properties on the market.
They’re not as scary as you’d think
While the idea of buying a property you can’t walk around in and view before purchasing might seem a little daunting, the process isn’t as scary as you might think. There are ways you can view an off-plan property to help make up your mind. Property companies use computer-generated imagery to showcase the desired outcome of their developments and help investors decide if its right for them. More recently, some companies are even starting to use virtual reality to give potential investors better insight into how the property will look upon completion. By wearing a virtual reality headset, clients can take a ‘virtual tour’ of the property and property site, giving them a better idea of the finished outcome.