What is an

Off-plan Property?

Purchasing an off-plan development refers to buying the property before it is complete or before construction. The number of developments being built is growing due to the rising demand for houses and to combat the housing shortage in the UK. In growing cities there is a constant need for high-quality accommodation, meaning that if investors choose to buy in the right places, they have the potential to reach larger rental yields. Investors looking to invest off-plan can visualise the development with computer-generated images (CGIs) and show homes. With the help of CGI’s buyers can envision what the final project will look like. 

Capital Growth– Investing in off-plan means the developments are usually built in areas with significant potential for capital appreciation. This is great news for landlords because as house prices increase, investors can release more equity from the property.

Energy Efficient– New builds often feature a modern design and are energy efficient. These factors make new buildings more desirable for young professionals and students who are looking to rent. 

Personalisation– Investors have the flexibility to pick which apartments they would like to purchase. Therefore, buyers can choose apartments based on their personal preferences. Investors can select their preferred specifications including balcony options, ground or top–floor availability, and bed count or apartment type. 

Higher Rents– Most new builds are usually fitted with the latest technology, from heating systems to kitchen appliances. This is a key selling point for tenants, as a result, tenants are willing to pay higher rent for newer accommodations. 

What is a

Completed Property?

A completed property is a building that has been fully constructed and is ready for residents to buy or rent. When the property is complete, it allows potential buyers to go view and assess the property before committing to purchase it. This process will allow investors to make informed decisions based on first-hand observations. Meaning the investors can get what they see and there is no fear of it changing during the purchasing process. 

Risks of Completed Properties

Doesn’t come with Warranty– As completed properties tend to be older, they don’t come with a warranty. Meaning there is no protection from any existing issues with the development. However, if the right property is selected there should be limited unexpected problems.

Higher initial cost– Completed properties often cost more due to them being immediately available and increasing value in the surrounding area. Many completed properties increase in value so it is hard to find a good BMV deal.

Limited customisation– the ability to customise a finished property is usually restricted and may come with additional costs. Changing the layout is a lot more complicated once a property has been built and requires more work and money.

Maintenance/repairs– Older properties usually require immediate repairs or maintenance due to the appliances, building, and decorating being dated. With extra costs comes an increase in the overall cost of the property.