Whether you’re looking for a way to grow your finances in both the short and long-term or you want to own a valuable asset that can be passed down to loved ones later in life, there’s plenty of reasons you might be thinking about investing in property. Property investment, especially in the UK, can be a successful way to do all this and more, and one of the most popular property types available for investment are off-plan developments. So what does off-plan mean, and what are the benefits of this type of property investment?
What Is Off-Plan Property?
Off-plan means to invest in a property that’s not been completed yet. The property could either be in the planning stages where construction hasn’t begun yet, or construction may have started but not yet finished.
For beginner investors, buying a property before you’ve had a chance to look around it and see how it looks in person can seem strange. Property investment companies understand this, and a lot of companies do everything they can to help the investor get a better sense of the property before making a purchase. RW Invest, for example, have used virtual reality and computer-generated imagery to create visualisations of their off- plan properties, letting potential investors see how the development is expected to look after completion.
Why Does Off-Plan Make A Good Investment?
Off-plan properties are considered a great investment for lots of reasons. The number one reason, which is important especially with first-time investments, is the cost. Many developers and property companies will offer off-plan properties at below-market rates as a way to attract more investors.
While these properties may be offered at a lower price than others on the market, however, they do still tend to increase in cost, sometimes even by the time you’re ready to find tenants. Capital growth potential is strong with off-plan properties, and often an investor will purchase the property at one price, to find that the value of the property has increased by the time it’s completed. This makes off-plan perfect for anyone that finds capital appreciation an important part of their investment strategy.
Another benefit of off-plan property investment is the demand you’re likely to see. New build properties are one of the most favourable types of rental property, usually welcoming a high rate of tenant demand. Off-plan properties go that extra step further than new builds, as the first tenant will be the first person to live in the property altogether.
Another reason why you might see a lot of demand for your off-plan buy to let property is the eco-friendly qualities that come with it. New builds are generally more eco-friendly than older builds as they tend to have better insulation and sometimes come with environmentally friendly fixtures like smart lighting. A lot of people now feel more conscious of these environmental issues, especially millennials, who are reportedly more likely to buy a product or service if it fits their eco-friendly values.
Invest In Off-Plan Property
All in all, investing in an off-plan property may seem daunting if you’re new to the world of buy to let, but it can actually be a great move to make. Off-plan property can attract tenants and ensure a steady influx of rental income with fewer void periods, along with increasing your chances of making some impressive returns when you choose to sell the property further down the line.
