The Benefits of buying Off Plan Property

Related articles

>> What is Off Plan Property?

>> FAQs

>> Investment strategies

>> The off-plan buying process

>> Why buy off-plan property?

>> Off Plan property pitfalls

>> Buy to let advice

>> Success stories

>> Property investment news

Why invest in Off Plan Property?

In recent years, the poor performance of the stock markets and rise in property prices has meant that investors are turning to property.

This article looks at the benefits to buying property 'off-plan' - for a clear explanation of what off-plan property is, read our free off-plan property guide

The Benefits of buying Off Plan Property

1. Many off-plan properties are sold at a discounted price. You could save up to 20% on the usual price by buying a property off-plan.
   
   
2. If you buy a property when it is at the planning stage, or in the early stages of being built you could have the option of giving some input towards the way the property laid out and finished. For example, you could choose to change the colour of the carpet, rearrange the kitchen and choose the colour of the walls.
   
   
3. In large developments you will have the 'first choice' of the available properties by getting in early.
   
   
4. You can take advantage of the rise in property prices and make an immediate return on your investment by the time the property completes.
   
   
5. There are substantial cash flow benefits to buying off-plan as most developers usually ask for stage payments to be made throughout the building process. You can therefore budget to meet each payment as it becomes due. Many property investors will also put the property back on the market just before it is completed thus never having to make the final payment (which is usually the largest).
   
   
6. Some developers will guarantee the rental yield of a completed property for a fixed period thus lessening the risk on investors. This could be win-win situation with the developer getting the funding to build whilst the investors benefit from the guaranteed rental income and increased value of the property over time.
   
   
7. Many off plan purchase contracts are 'assignable' meaning that you can sell your property before it is completed (known as 'flipping' or 'turning'). Read our article on property investment strategies.

> Get a Discount (5-20%) on the original price

> Only pay a Low-deposit

> Receive high yields (on rental and/or capital growth)