Off-Plan Properties are properties which can be purchased before completion – even if it is near completion and you want to get involved; this is still an off-plan purchase.

Cheaper to Go Off-Plan?

In short- Yes!

Off-Plan properties will typically appear around 20% lower than market value to compensate for you buying into an asset that essentially does not yet exist.

This is good – this now makes for happy developers and financial backers as you a have single-handedly mitigated their risk by showing interest in the project before it is off the ground.

A Renter’s Dream

Choosing an off-plan property offers a significant edge in the rental market. These new builds attract tenants with contemporary designs, excellent insulation, and energy efficiency, crucial for reducing heating costs post-pandemic.

Modern tenants value comfort and sustainability, and your off-plan property delivers. Features like communal areas, en-suite bathrooms, roof gardens, and patios enhance appeal, drawing in high-quality renters willing to pay a premium.

Additionally, newer properties are built to modern standards, reducing the likelihood of maintenance issues. This robustness translates to fewer repairs, ensuring a smoother renting experience for tenants and potentially higher rental yields for you.

In summary, off-plan properties offer modern, well-designed spaces with contemporary comforts and minimal upkeep. This makes them highly attractive in a competitive rental market, promising higher rental yields and long-term tenant satisfaction.

So, you’re interested.

Where to next?

Well – assuming you’ve done your research and are now interested in a specific area to invest in.

1. Complete your reservation form and pay the fee; this will typically be around £1,000 - £2,000 and will be deducted from the purchase price. You’ve now secured the property.

2. Hire an experienced off-plan property solicitor. They will review your contracts and plans – conducting the due diligence with the developer to determine terms and conditions of the sale. They will then arrange mortgage financing and have your lender value the space.

3. After the legal stage is complete - it’s time to exchange contracts with your developer – at this point you are legally bound to complete the process. At this point you may be required to pay an additional deposit – around 15% of the purchase price.   Assuming the work has started; the developer will now start your build according to the agreed upon timeframe.

4. This is where you get your say on the design, fittings and cosmetic choices in the property.

5. Finalise your mortgage and valuations – the lender will typically conduct this part at completion. At this point you will most likely be notified of an imminent completion date.

6. Construction is complete! You will likely now be making the final payments to your developer and keys will change hands.

Conclusion

Remember, this process can take a while—you might be keeping an eye on it for months or even years from the day you sign that reservation form. Make sure your legal side is sorted out, and you’ll have a much smoother journey to the finish line.

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