Why Off Plan Property?
The reasons why purchasing off plan properties is becoming so popular these days is clear. Here at Hillcrest we focus almost exclusively on these opportunities for the following reasons:
Off Plan properties can be sourced in ‘blocks’ of units. That gives us negotiating power with the developer and you benefit from significant discounts off the market value.
If you are purchasing a property that is till 6 – 24 months or longer away from completion, you benefit from fixing the price when you purchase and then having an extended period of capital growth before you actually need to complete. There may even be an opportunity to sell or assign your interest in the property without even needing to complete on it.
- Maintenance on new build properties is usually minimal, if anything at all for the first few years. In the UK all properties come with NHBC or similar guarantee, and abroad new properties are increasingly built to international standards which are far better than in the past.
- You get an immediate discount and instant equity without doing any work. This is unlike buying and renovating an old property which could take six months or more and with little more profit in it than the discount you received without the effort!
- Renters like new properties. They generally command a premium rental price and they are the first choice of renters against an older property.
- Developers rarely invest tens of millions of £££ without doing their own due diligence about local demand, thus increasing investor confidence in the location in question.
- Mortgage companies like to lend on new property, so we can sometimes get better rates or higher lending limits.
- New build property is more desirable to buyers, with the benefit that it may sell more quickly and at a higher price than older property. This is a definite benefit when it comes to resale of your investment property.
All of these factors come together to make Off Plan property one of the most attractive investments vehicles available today.
