Everything You Need to Know About Buying Off-Plan

Cheaper prices and higher returns

The first thing to know about buying off-plan, and the main reason for its popularity, is the fact that it is a much cheaper way to buy. When you buy a property during the planning stages, the value is likely to go up by the time of completion. This means the potential for capital appreciation is much higher than that of a completed property.

Also, some developers can offer discounts for early investors. While the property is under construction, you could secure a cheaper deal. Once the property is fully built, it will begin to get more interest from buyers which will drive up the price. Therefore, not only is buying off-plan a cheaper alternative, but it is also a more profitable alternative as the value of the property is likely to increase over time.

More choice and higher quality design

Another attractive element of buying off-plan is investors will often have the most choice. Whether it is the great views or south-facing gardens, if you buy off-plan you will get the choice of a specific unit. To secure the best unit, developers will work on a first-come, first-serve basis. Buying off-plan puts you in the best possible position. Consequently, securing the best unit in the property will increase tenant demand and reduce the vacancy rate.

On top of this, an off-plan property will have a new-build design. Developers will incorporate modern, high-spec features that will be much more appealing to potential tenants. Not just from a design perspective, but a practical perspective too. New-builds are being built to the latest environmental and safety standards, meaning your property is future-proofed. Modern tenants are putting more value on living in newer and greener properties. Also, buying off-plan makes the role of being a landlord a lot easier too. The newer the property, the less likely it is to encounter issues.

Research the developer

As with any investment, there is going to be some element of risk. A key part of being a successful investor is knowing how to minimise these risks. One way to do this is by conducting thorough and careful research into your investment. When it comes to buying off-plan, the best way to reduce any minor risks is by conducting full due diligence on your developer.

The main risk of buying off-plan comes from failure on the developer’s side. This risk can be reduced if you research your developer. Investigate the history, reputation, and standards of their work. Here at CityRise, when dealing with off-plan developments we make sure to complete full due diligence on any developer we work with. Taking into account everything from the financial stability of the company to the standard of completed projects, no stone is left unturned.