If you are considering an investment in property, you may want to consider buying off plan. Buying off plan means that you are purchasing a property that is still in the planning stages. Some people are reluctant to buy something they cannot look at, but there are definite advantages to this kind of investment. In this article, we will consider some of these advantages, as well as things you have to look out for before investing.
Off Plan Properties Can Offer Good Value
When you buy off plan, you usually pay less than you would pay for a completed property. Developers have an easier time financing the construction of pre-sold properties, so it’s in their interest to sell off plan. This is - or should be - passed along to the buyer. When you consider any off plan investment, research the market for similar properties, and expect to pay less, as much as 25% in some cases.
Hold Onto Your Money Longer
For an off plan property, you will typically have to come up with a down payment, but you won’t have to make any mortgage payments until the construction is complete. This can offer you more flexibility with financing.
Investment Opportunities
As we have seen, an off plan property sells for less than a developed one. This means that if you want to resell the property, you can often make a quick profit. How fast you can turn a property over depends, of course, on the local real estate market. This is something you have to consider in your calculations.
Researching the Property
With an off plan investment, you do have to be sure to research every aspect of the property and location. You also want to be sure you are dealing with a reputable seller. If you are not familiar with architectural plans, be sure to have the plan analyzed by someone who can explain what everything means. Of course, the developer will do this to some extent, but you should also go over the plan with a disinterested party.
You should be clear about the kinds of materials that will be used in construction, the presence, type of or absence of any features or amenities (e.g. heating, air conditioning, recreational facilities, access for the handicapped, landscaping, parking, etc.). All of these can be crucial to the ultimate value of the property. Also be clear about any zoning issues or legal permits that may be needed. The developer is responsible for securing these, but make sure this is all covered.
Surrounding Area
With any real estate investment, the location is at least as important as the property itself. Find out as much as you can about the neighborhood, city or region. This includes facts about the local economy, climate (e.g. some places have slow or down seasons; others are prone to severe weather certain times of year) and crime statistics. The proximity of roads, highways or public transportation can also be a factor.
These are some issues to consider if you are thinking about buying off plan. If you plan carefully, you can find some very good off plan investments.
Ian Clark is a real estate consultant and advisor in UK. He has extensive experience in all aspects of Real Estate Investment built over 20 years. He is also the Director of Midas Estates, an online real estate website offering property investment opportunities in UK and overseas. Midas Estates is a Buying Off Plan company with an aim to provide maximum capital growth for the clients as the majority of the clients are looking to secure financial security in the shortest time possible. Ian’s honest presentation of the real estate investing business, including both profit and risks is respected for his sincere, candid approach. He is highly regarded as one of the most sound, dependable source for the specifics behind the sometimes tricky and exigent facets of real estate investing.
To get more information and for a 30 minute no obligation absolutely free consult in how to make your property investment strategies work log on to http://www.midasestates.com/offplan/.
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Tags: mortgage, real estate investing, Real estate investment
