BENEFITS OF BUYING PROPERTY OFF PLAN
When it comes to buying a property, we all want to get the best deal possible, but with more and more people chasing property, it can sometimes be hard to enter the property market, and that’s not even taking into account the cost of property ownership.
One great way of entering the property market is by buying a property off plan. Buying off plan essentially means that you are buying a property that has yet to be built or completed and you are relying on floor plans, price lists, completion dates and architect drawings to make your decision to buy.
You might think that buying a property without physically seeing it is a bit risky, but many buyers are turning to off plan properties due to the number of benefits and incentives only a new property can provide.
Off plan properties are attractive to both owner occupiers as well as investors, but these types of properties do tend to get some bad press in the media. However, by doing thorough research, due diligence beforehand and working with a reputable company like Henry Charles Estates, that understands the property market inside out, you will be better equipped in purchasing a property off plan that provides you with stable and solid growth for years to come.
If you’re looking to buy a property but are torn between buying a new property off plan, or a slightly older property, make sure you read our latest article that provides key benefits as to why buying off plan can be more beneficial in the short and longer term.
1. More Affordable
Buying a property off plan also tends to be the more affordable option as prices go up once the development has completed. To get the cheapest prices, it works in your favour to get in as early as possible, as developers tend to push their prices up, as more properties are sold. It also pays to buy in a suburb that is up and coming. Suburbs that are undergoing transformation will see property prices soar once retail, new transport links or new schools have been completed which will attract more and more people to live in these areas.
2. First Pick – Greater Choice
When buying off plan you get to pick your property first. This means you get the chance to pick the best property. If you wait until construction has finished, only the leftovers will be available and in most cases these are the ones nobody wants.
While completion can sometimes take up to two years or more, this is positive as it gives you time to save for a larger deposit. If the property market grows in value, then you have also made some good equity growth.
4. Financial Benefits
Some states have put in place special incentives for First Time Home Buyers and Investors to take advantage of when buying off plan. They are encouraging the purchase of off plan properties and by doing so, you can save thousands. Ask a Henry Charles Estates Property Consultant about what financial benefits you can attain when buying your home.
5. Deposit Options
While most people pay cash to secure their property, there are other more flexible options that you can consider. These include using a method to pay a 20-35% deposit then pay the remaining balance with monthly instalments or discuss with the developer the easiest payment methods for your particular needs. It’s always best to check with your Property Consultant what method of payments the developer is happy to accept on exchange.
6. Price Freeze
When you buy off plan, you freeze your price so if the property market grows in value and your property goes up in value, you don’t have to pay any more. We have many clients that pay £?? and by the time they settle, their property has gone up between 20% and 50%! This is very powerful as this capital growth allows you to buy another property and continue to build your property portfolio.
7. Colour Choices
Occasionally, a developer offers you finish options for your property. You may get to choose between a light or dark colour scheme, kitchens, bathrooms, ceramics or wood finishes.
8. Deposit Held in Trust
When buying off plan, your cash deposit is held in trust. Usually, this money is invested on the buyers behalf while you wait for the construction to complete. This could mean a few thousand pounds/dollars/euros of interest which is a nice little bonus at the end of construction.
9. It’s New!
Everyone loves NEW! As a first home buyer you’ll love moving into something brand new while for investors, you will maximise your rental return as an incoming tenant will pay more to live in a new apartment.
10. 20%-35% Deposit Required (occasionally as little as 10%-15%)
Buying your property off plan requires between 20%-35% deposit and sometimes you might be able to secure your property with only a 10%-15% deposit. This makes it even easier to get your foot on the property ladder. Ask your Henry Charles Estates property consultant whether you are able to secure a property with just 10%.