Everything going according to plan

The British public are putting more faith in buying properties ‘off-plan’ according to latest figures.

Off-plan sales – that is purchasing new properties pre-build – soared by 30% in London in the past six months. While buying a property without seeing the end result may seem like a gamble, developers are quick to reassure consumers, and it is a risk it seems that many are willing to take.     

By snapping up a new build property before it’s complete, would typically have saved you thousands as developers are keen to get deposits in place as soon as possible. However with competition for each new-build property currently rife, you may end up in a bidding war and paying more to secure your dream home.  

You may however also consider putting down what is known as an ‘early bird’ deposit, giving you first refusal as soon as the plot is ‘released’.

However, by purchasing an off-plan property, you should currently see a significant rise in its value before you’ve even moved in:

“Buyers are aware that property values will have appreciated in the area by the time they move in,” says David Pollock, managing director of Greene and Co estate agents.

Indeed, there are currently so called ‘hotspots’, such as Kentish Town in North London, where new-home prices have risen by 15% in the past six months.

Starter homes are the most likely to be snapped up off-plan, according to Linden Homes’ Tom Nicholson, especially in London and the South East. However, people remain understandable cautious about party with their money for more expensive properties without seeing the finished article.

However, Property Investors looking to purchase off-plan properties on a buy to let basis should proceed with caution. It is always wise to consult letting agents in the area, and get a realistic figure for the monthly rental amount that could be achieved from the property. As quite often investors have been left with disappointing returns when compared to those promised by the developers.

“Most investors are disappointed with the rentals not being as high as promised, as so many developers do not appoint independent lettings agents to give estimates, and because they don’t seek independent rental assessment from a letting agent, explains Marc von Grundherr of estate agency Benham & Reeves”   

If you are looking to purchase a new property, both new-build or second hand, make sure it you get full buildings and contents insurance. Speak to Discount Landlord today for highly competitive quote.  

Richard Anthony

discountlandlord.co.uk