What is an off plan property?

An off-plan property in the UK is a property that is available for purchase before it has been built or completed. Buyers purchase the property based on the plans and specifications provided by the developer or builder, often at a discounted price compared to the market value of completed properties in the same area.

Typically, buyers will be shown detailed plans, computer-generated images or 3D models, and sometimes a show home or a prototype apartment to help them visualise what the finished property will look like. Buyers will typically need to put down a deposit to secure the property, with the remaining balance due upon completion.

Why should you invest in off plan properties?

Investing in off-plan properties can be attractive for several reasons, including the potential for discounted rates and exceptional growth of capital.

1. Discounted rates

Off-plan properties are often offered at discounted rates compared to completed properties in the same area. Developers or builders may offer incentives such as reduced prices, stamp duty contributions, or other perks to encourage buyers to invest early. This can be a significant advantage for investors who are looking to maximise their return on investment.

2. Capital growth potential

Off-plan properties can offer exceptional growth potential. As the property is purchased before construction has commenced, buyers have the potential to benefit from any increase in property prices during the construction period. This can result in significant capital gains if property prices rise between the time of purchase and completion.

In addition to these potential advantages, buying off-plan can also offer buyers the opportunity to customise the property to their own specifications, as developers may be willing to make certain modifications or upgrades before construction begins.

However, it's worth noting that investing in off-plan properties also carries certain risks, such as construction delays, changes to the property's specifications, or a downturn in the property market. As with any investment, it's essential to do your research and consider all factors before making a decision.

How to acquire your first off plan property?

Acquiring your first off-plan property can be a complex process, but there are several steps you can take to make it easier:

1. Speak to a financial advisor

Before you start looking for off-plan properties, it's a good idea to speak to a financial advisor or mortgage broker to determine how much you can afford to borrow and what kind of mortgage is suitable for you.

2. Decide your goal

Determine your investment goals and the type of property that you're looking for, whether it's for investment purposes or to live in.

3. Find the appropriate property

Research different developers and their projects, looking at location, pricing, and the quality of the build. Attend viewings, visit show homes or model apartments, and read reviews of the developer to make an informed decision.

4. Pay your deposit

Once you've found the right property, you'll need to pay a deposit to secure it. This is typically around 10% of the purchase price.

5. Involve your solicitor

You'll need to involve a solicitor to carry out the legal work, such as the contract of sale, conducting searches on the property, and checking the title deeds.

6. Get your mortgage sorted

Once you've paid your deposit, you'll need to arrange your mortgage. This can be done with a mortgage broker or through a bank or building society.

7. Prepare for post-completion 

As the construction progresses, you'll need to stay up to date on the progress and be prepared for the handover process after completion, including arranging for any necessary inspections and obtaining the keys to your new property.

8. Completion

Once the property is completed, you'll need to pay the remaining balance and complete the legal process of transferring ownership to you.

Conclusion

Off-plan properties offer an exciting opportunity to invest in the future, a chance to put your trust in a developer's vision and watch it come to life. With the promise of discounted rates and exceptional growth potential, off-plan properties can be a sound investment for those with a keen eye for the property market. 

It's a journey that starts with a dream, takes you through the thrill of choosing the perfect property, and ends with the satisfaction of owning a beautiful, brand new home or investment. 

However, it's important to be aware of the risks and do your research before embarking on this journey. So if you're ready to take a leap of faith, off-plan properties may just be the perfect way to bring your property dreams to life.