Benefits of an Off-Plan Property Investment

Firstly, What Is Off-Plan Property?

Off-plan property is a property not yet built, also known as ‘new builds’. From 1-bedroom apartments to four-bedroom detached new homes, investors can purchase such properties before construction has even begun.

Due to there not being a physical property to view, investors looking to buy an off-plan property can base their decision on specific floor plans, CGIs, and show homes. These help them to better envision their potential investment. Off-plan properties for sale experience lower costs, in buying and maintenance, alongside high rental income to match the demand.

More Value for Money

Off-plan properties can often be purchased 10-15% below their market value. As the development reaches nearer to completion, this can drop to 5-10%. Even this percentage represents fantastic, profitable growth. If timed correctly, however, buyers can maximise their return on investment.

In the current climate, with house prices looking to drop, buying off-plan can be the best way to invest your money. While waiting for the development to complete, the property market fluctuates and, especially if being built in a hotspot location, its value will increase over time. This means that investors can immediately profit from instant equity once the development is built.

Complete Peace of Mind

While buyers may be anxious to invest in a property that does not yet exist, benefits greatly outweigh concerns. Once the purchase is finalised, investors just need to sit back and wait for their off-plan property to be completed, increasing in value over time. Even when it is ready for tenants, investors can still be hands-off with letting and managing the property, all while greatly benefiting from passive income.

Off-plan properties are completed to a higher standard, with newly-fitted appliances and up-to-date wiring, meaning far less maintenance is needed. If an issue does arise, new-build properties are often covered by a 10-year warranty to help this. Two more benefits of off-plan property investments.

With the new EPC criteria, some landlords are expected to £27,000 pay to ensure their properties meet the new standard. With a new-build property, investors need not worry or spend a penny to upgrade it. Off-plan properties already meet the EPC criteria.