DIRECT FROM THE DEVELOPER
Off-plan properties involve buying the property before it has been built. In many cases, the property can be many months or even over a year away from completion. This asset class is one of our mainstay property solutions. For the investor, it gives several advantages.
The biggest advantage is you can secure a substantial discount to market value. This gives the investor equity in the property from day one. As a result, it can be a perfect scenario for an investor which is trying to build up a portfolio. This is because when you go to complete, your property has already appreciated significantly. This then allows for refinancing to release equity.
Another advantage is that while you are waiting for the property to complete your property could appreciate further in value. This will likely be the case as off-plan property is usually situated in prime city locations that are going through a process of regeneration.
There are disadvantages to buying off-plan. One of these is you won’t get an income until the property is complete. Sometimes a developer may give you a return on deposited funds until the property is finished. But this is not always the case.
Another disadvantage to buying off-plan is the risk of the developer encountering problems during the building process. This is why we have a very strong vetting process to negate this risk.