Investing in properties requires a lot of research and exploration on the many types of investments you can make. This can sometimes be overwhelming, especially if you have no idea where to begin. However, if you want to make a good profit out of investing, you may want to invest in off-plan property investments. If this is your first time hearing about this type of investment, this article will help you in understanding them. Who knows, off-plan property investments may actually be “the one” for you.
It helps to learn first what off-plan properties are before tackling investing. An off-plan property is a kind of property that's available for purchase even before it's been constructed. If you've ever heard of the phrase "buying off-plan," this is most likely what's being described. However, this pertains typically to apartments, although not all the time. A lot of people generally find this attractive, especially if you're the type of person who wants to take a risk and grab a property at a low price, hoping it sells in a rapidly rising market.
Off-Plan Property Investments: The Basics
Indeed, having enough knowledge about off-plan properties can help you in making the right decisions should you want to invest in them. Many companies today offer assistance in making such investments, and Thirlmere Deacon Investments is just one of them.
Here are some of the things you need to know about investing in off-plan properties:
- Take advantage of location prospects and potential for growth: Buying an off-plan property not only comes off as cheaper than completed properties, but you can also leverage on the potential of the locations offered for future benefits. Getting an off-plan property in a location that you know is starting to attract a lot of investors can give you a significant advantage when it comes to selling the property in the future. Even if you don't resell it, priming it for improvement and using it as a rental space can also get you profits in the long run.
- Get properties at prices much lower than the expected average: One of the advantages of getting an off-plan property is the potential to actually secure your purchase at prices that can be below the average market value. This is often attributed to developers wanting to show clients particular levels of sales before completing or before showcasing it to marketing. Some developers even offer more discounts to investors that buy many properties at any given time as an incentive. If you want to obtain big discounts, it can be a good idea to negotiate directly with the developers themselves so you can maximize the deals you can get.
- Attain strong growth of capital with your properties: When you directly purchase an off-plan property, you can benefit from the price growth of the house after its completion. For instance, when you buy a property in 2015 and have the establishment or structure completed in 2017, the property value would have grown in the past two (2) years during its construction. This means you can have an advantage in your property's value, especially when you get to purchase it from the outset at a discounted price.
- Resell the property before completion and gain profit: With the above in mind, you can also resell the property you've acquired off-plan and gain profit from it. Since your property will most likely increase in value before it's completed, your investors can actually put up their property for sale at a much higher market value even prior to completion. This is an optimal strategy for investors who wish to make more profits. However, you also have the potential to accrue more capital growth if you tenant the property, as you also get the benefit of having rental income on a regular basis on top of capital.
- Make staged payments and smaller deposits: Depending on the property and the developer, some off-plan properties are offered staged payments. This can greatly help when it comes to spreading the cost of the purchases you make, and it can even allow you to get a property without having to give a significantly huge deposit that can set you off in your budget.
Conclusion: Off-Plan Property Investments Can Work for You
Off-plan properties can be good investments if you study investing properly. As doing something new can be overwhelming, don't neglect undergoing training or doing more reading about off-plan properties if you want to fully pursue it as an investment endeavor. Remember, even if investing involves risks, calculated risks – or risks that you can study carefully – can help you make the right decisions in investing.
