Buying off-plan Property: What you should know.
Go back 20 years and off-plan purchases were almost unheard of in the UK and solely the preserve of purchasers in the Far East, and a few property speculators in London. Now it is a firmly established mode of purchase and UK buyers are engaged fully in the method of sale, and the opportunities it may present. Of course purchasing a property before it’s completed can feel risky. However, the right property can increase significantly in value after it has built, making purchasing off-plan potentially a financially sound decision.
What Does buying off-plan mean?
Buying off plan property means purchasing a property, most commonly an apartment prior to its completion. An example of that is back in 2016 Galliard – (the capital’s largest privately owned residential property developer) launched six developments in and around London – all selling off-plan – attracting a number of local buyers as well as overseas investors, particularly first-time buyers looking to grab one of the apartments starting from only £139,995.
Advantages of buying off-plan?
Buying off-plan lets you purchase a property at a price that could be below its future market value and the principle has become a commonplace method of sale across the country; but that doesn’t mean that buying an apartment today for 700,000 will be worth 900,000 the following year or upon building completion. Make sure you research the market thoroughly prior to purchase. One of the best advantages however is that buying off-plan lets you pick the cream of the crop when it comes to selecting the property best suited to you and your budget.
Whether you plan to resell or live in the apartment, one of the biggest advantages of buying off-plan is selection. Unlike in completed buildings, you can usually select the ideal unit to suit your needs, tastes and budget when buying off-plan property.
Disadvantages of buying off-plan?
Buying off plan is far from risk-free, but the majority of developers have now begun to offer deposit guarantee for the peace of mind of the buyer. There is of course the slight possibility that the purchased property may not increase n value as much as initially expected, or in some rare cases at all during the construction. To ensure the best possible return or investment, it is best to look at off-plan property built by highly reputable developers such as Taylor Wimpy, Barratt, Galliard and Regal.