Some of the best value in property is in off-plan investment, so why is it overlooked?
Buyers have a few understandable hang-ups when it comes to off-plan properties. Namely, that the property doesn’t exist yet and can’t make you a return until it does.
Developers, aware of the customer’s concerns, will still aim to sell all the units before completion. They do this by lowering their prices, in certain cases this can be as much as 20% off. For example, The 56, a recent development in Liverpool, is now being sold for 20% below the market value.
The developer will sell the property for its current market value. They won’t consider property value growth when pricing the property for selling. Therefore, even before completion there may be a rise in value. Some of the cities in the North-Western UK there’s been property growth over 10% per year. So, it’s not unreasonable to assume over the course of a 2-year development an off-plan property may increase in value by 20%.
Whilst off-plan might not offer fast returns like a “ready to tenant” or “already completed” property, but it’s better for property growth. The lower prices also make entry for many new investors easier.
Before investing, it’s always worth checking the background and experience of the developer. Stability and transparency in their work are valuable traits that ensure success in your investment. At Alesco we only work with reputable developers, for example one of our partners is Sourced Development Group with combined experience more than 250 years they have a proven track record of performing.
If you’re interested in investing in off-plan, make an enquiry online or call one of our specialists on 0203 819 7366, today.