Purchasing a property off-plan can be daunting for both new and seasoned property investors, so we’ve created this beginner’s guide.
What is Off-plan?
A growing market among first time buyers and property investors alike, off-plan buying refers to the purchase of a property prior to the completion of construction. The ever-growing strength of property markets in the UK’s regional cities, combined with the potential for excellent rental yield and capital growth, make off-plan buying an excellent choice if you’re looking to invest in property.
The Benefits of Buying Off-plan
Compared to traditional purchases, buying off-plan grants far earlier access to the development units on offer, greatly increasing a savvy investor’s odds of securing the perfect property at an ideal price. Buying the property at today’s prices means that your investment will likely have already increased in value by project completion, allowing you to capitalise on growth in strong property markets as early as possible.
A brand new and purpose-built apartment is likely to be very attractive to potential renters, as it will be free of the issues that ordinarily plague second hand property conversions, such as outdated facilities and structures. Our unique approach to property development allows us to offer even more to off-plan purchasers. Prospective investors benefit from full deposit protection and an extensive ten-year structural warranty, as well as the industry leading expertise of our sales and customer care teams.
Things you’ll Need to Consider
Although off-plan property can yield excellent results, as with any investment it is wise to consider your options and plan thoroughly as there is no guarantee on profit. Be sure to research the current and projected performance of the area’s property market, as areas undergoing regeneration are likely to show far stronger capital growth. (Download our whitepaper on Leicester, Liverpool and Manchester for market insight on these three regions here.) Without proper forethought you risk buying property in a declining or stagnant market, putting your investment in dangerous territory.
Buy to let investors will also want to be aware of the level of demand for rental property in an area and the value of potential tenants. Areas that offer a broad selection of restaurants, shops and amenities will usually have a greater appeal with renters, while properties that neighbour employment hubs, universities, and good transport links will prove particularly popular among young professionals and graduates.
Steps to Buying Off-plan with Forty/8
- To reserve a property, we ask for a £1,000 reservation fee and a signed reservation form
- Contracts are usually exchanged within 28 days, it's at this point the 10% deposit is due
- Once you have exchanged, our After Sales and Customer Care Manager will contact you to introduce himself and discuss the next steps
- Once your completion date is confirmed our After Sales and Customer Care Manager will contact you to arrange a home demonstration and handover
- In preparation for completion, your solicitor will request the remaining money due and the original documents signed
- Once we’ve had confirmation from our solicitors that completion has occurred, we will hand over the keys to you!
The Hallmark – Our Fantastic Off-plan Offer Available for Reservation Now
The Hallmark sets the standard for the ultimate in urban living, comprised of a stunning collection of 145 luxury 1, 2 & 3-bedroom apartments and penthouses. With completion due 2019, we have introduced The Hallmark to the market with a two-year lead for a deposit of only 10%, allowing our investors to take advantage of Manchester’s rising house prices early. Forty/8 are also offering a guaranteed 7% annual interest on deposit from exchange to completion, far more than what you would expect to get in an ISA.
Our next open weekend is at The Park Inn on Cheetham Hill Road, from Friday 17th November - Sunday 19th November 10am to 5pm. Contact us to book your appointment now.
For more information on off plan buying or any of our developments, get in touch with us: http://forty8developments.co.uk/contact-us