Investing in off-plan property can offer many benefits. It is much cheaper than buying a finished build, is illiquid, and yields capital gains. And, since it is a land-based investment, it is much easier to sell if the market price of the property goes up. Off-plan property is the way to go if you are an investor with the long-term mindset. Listed below are just a few reasons to make off-plan property investment a part of your portfolio.
Investing in off-plan property is cheaper than buying a completed build
The best reason to buy an off-plan property is its potential for growth. Off-plan properties are cheaper than completed builds, as developers want to attract investors to the project early. If you purchase off-plan property before the development is completed, you will enjoy greater price flexibility, because the surrounding properties can rise as well. This can mean clear returns for you. You can even choose a unit in a prime location, ensuring capital growth and rental income.
Buying off-plan property is cheaper than purchasing a completed build, but it is important to remember that the price will increase a lot over the course of the build. Because of the rising costs of property, everyone is looking to buy off-plan property. Purchasing an off-plan property is an effective way to lock in the price of the property with only a small deposit.
It can yield capital gains
Off-plan property investments can generate high rental income, as they are purchased during the construction phase. Unlike buy-to-let investment properties, this type of investment offers potential for capital gains. Because it is unfinished, it may have a better growth rate than completed properties. Therefore, it is attractive to property investors. However, buying off-plan property is not for everyone. Read on to learn how off-plan investment works and how to make the most of it.
The benefits of off-plan property investment are many. First and foremost, investors can benefit from capital growth while their property is under construction. As house prices in a given area rise, the off-plan property can be worth many times more than when purchased. Property developers often offer financial incentives for early buyers. The development period can be as long as 12 months. As a result, investors can make significant profits on their off-plan property investment.
It is easier than buying a house
Investing in off-plan property is a more lucrative proposition than buying a fully-built home. The cost is much lower, and most off-plan properties have warranties covering the structural integrity of the property for at least 10 years. This means that early buyers stand to save tens of thousands of pounds. Moreover, buyers who buy off-plan property have the advantage of being able to choose the distribution of rooms, furnishings, fixtures, and fittings. Moreover, buyers can exchange the property for another one when the price tag changes.
Off-plan property buyers can take advantage of bigger discounts from developers. Developers have to secure early sales to fund the construction of the property. The biggest payment is usually made before the completion of the property. Off-plan property buyers can enjoy these benefits as well as more. These benefits may be the main reason why investing in off-plan property is more affordable than buying a house. Aside from the low price, the property can be paid in instalments.
It is illiquid
An off-plan property investment involves purchasing a property while it is still in the construction phase. This provides investors with an opportunity to profit from rising property values before the project is finished. There are several advantages of off-plan property investment, but the most obvious one is financial. The prices of off-plan properties are typically lower than those of completed properties. Another advantage is the potential capital return. Listed below are some reasons why it may be a good investment for you.
One of the major disadvantages of an off-plan property investment is its illiquidity. While off-plan property can give you a decent yield, the lack of liquidity can deter some investors. The property market and economy can change within a few days. It’s difficult to predict how rents will do once the project is completed. In order to ensure that your investment will provide a high rental income and long-term capital growth, you should consider how much risk you’re prepared to take.