The Benefits of Buying Off-Plan

While it isn’t as straightforward as traditional home-buying, off-plan purchases are becoming increasingly common. With the continuous advances in technology, most off-plan developments will be able to provide computer-generated imagery (CGIs), so you can see what the finished product is likely to look like, and the financial advantages of such an investment can often outweigh any uncertainty.

Purchase Prices are Much Lower than Market Value

The biggest advantage of buying a property off-plan is the ability to secure the purchase at below-market value. Quite often, this is due to developers wanting to demonstrate a certain level of sales prior to marketing the development. To do so, it is not uncommon for some developers to offer additional discounts for investors purchasing multiple properties at any one time as an added incentive, so you save more and make more.

Secure the Property With a Small Deposit and Spread out the Payments

Depending on the developer and the property type, some off-plan deals have the added benefit of staged payments. Starting with a minimal payment of a 15% deposit to secure the property and a small reservation fee which is typically £2,500. By doing this, you can split the payments into the respective phases of development. These payments can help spread the cost of the purchase and enable you as an investor or as someone planning to live in the property to purchase it without a significantly large deposit. If you have used a mortgage to purchase this you will see your money beginning to work for you, increasing in market value upon completion. Off-plan developments often come with assured income thus making this even more worthwhile. 

Your Property Increases in Value upon Completion

Those who purchase property off-plan benefit mostly from house price growth. If a property is purchased in 2019, but isn’t due for completion until 2021, when the property has finally been built, they will have seen their property grow in value each year. This can add tremendous value to a property, especially if it has already been purchased at a discounted price from the outset allowing you to maximise on the investment.

Ability to Re-sell at a Profit Before Completion

As an investor, you can choose to put the property up for sale and sell at a higher market value. If you sell before completion, you don’t pay the stamp duty, the owner at completion does. This can be a good strategy for those looking to make a profit quickly. However, you would see much more of a capital growth benefit by tenanting the property and also gaining the benefit of a regular rental income, in addition to capital growth. 

Here at Flambard Williams, we work closely with reputable developers who have built a strong reputation for providing high quality developments with a proven track record to ensure the security of off-plan investment. If you would like more information, please get in touch to speak to one of our Invest specialists today.

 

Latest news and publications

The Brexit Result: What Does This Mean for You?
Read more

Our customers

A very impressive company

I can’t really praise the service I’ve received highly enough. Personal, professional and very efficient. Charleigh has been with me the whole way and I can’t thank her enough. I would recommend this company to anyone!

Mr J Wild
Flambard Williams are a team of honest & professional people

The consistency and quality of services provided by Flambard Williams are very good. They are efficient in responding, and provide best expertise available in their sector. You are always updated. So, you need not worry about futures. With Flambard, you have absolute advantage, in that you receive honest advice and hassle free service.

Mr M Mekhaimar
Not just a sale

I recall working through Flambard Williams to acquire my first property. Having met more real estate agents (over 50). I found them to follow up on everything. All concerns such as location, development company, solicitors, payment reminders were handled by them. They have local knowledge of the areas and are aware of the development and the surrounding. I do wish they also had a unit for London and other cities.

Asif

Proud to be featured in