Investors Buying Off-Plan: What are the Benefits?

How Can an Investor Benefit from Buying Off-Plan?

Purchasing off-plan is an incredibly viable investment option with many benefits.

Below Market Value Price

Developers position the off-plan purchases below market value. Therefore, investors can secure the property at a much lower price. This enables developers to sell as many units as possible before the completion of the property.

Strong Capital Growth

Investors who purchase off-plan typically see a rise in price growth overtime. On completion, the price is much higher. Off-plan properties are set below market value due to the inconvenience of not being able to move in immediately. There is also the risk of paying for something not yet built. However, property prices grow in value each year and are affected by the economic growth in the area.

Sell for Profit on Completion

Investors who purchase at the early stages of an off-plan development may also choose to sell on completion. Consequently, generating a profit. As the value of the property increases overtime, the investor can sell for a higher value.  However, many seasoned investors will tenant the property quickly to benefit from regular rental income. In the long-term, the value of the purchase will continue to increase and add to capital growth.

Flexibility to Pick Preferred Units

Upon finalising the property, investors will have the freedom to pick the units they prefer. Investors will have the option to pick rooms with certain features or across different storeys.

Energy Efficient

Off-plan properties include newly built developments or refurbished properties. New builds now adhere to green specifications to ensure a sustainable and environmentally friendly property. Therefore, the properties are much more energy efficient with higher EPC ratings. Consequently, higher EPC ratings result in cheaper bills for tenants. For investors this is a huge selling point and will increase tenant demand. On the contrary, investors can charge higher rental rates due to sustainable specifications.