Thursday, September 26, 2019 / 01:00PM / Content By James Tom / Header Image Credit: Bayut.com
As the demand for high-quality city-centre living increases throughout major areas around the country - coming from both students looking to be on the doorstep of their chosen school or university, and young professionals looking to work within the city area - the amount of off-plan property developments continues to rise in order to keep up and prepare for the future.
But what exactly is off-plan development, what are the benefits/risks, and what steps can be taken to ensure that an off-plan investment strategy is a secure one? Well, for some more information, take a look at the following quick guide, giving you the lowdown on some of the important factors concerning off-plan investment.
What is Off-plan investment, and what are the benefits?
Off-plan property refers to a property or development that is still in its construction or planning phases, and so hasn't been completed yet. What this means for potential investors is that they won't be able to see their potential investment before purchasing, or go for a viewing in the traditional sense.
Investing in off-plan property comes with many benefits. Not only can investors gain early-bird access to an in-demand area, allowing them to jump in before significant growth, but off-plan properties are also often offered at below-market value.
Are there risks involved with this investment strategy?
Historically, the risk involved with off-plan investment came from the uncertainty surrounding the construction process, such as the reputability of the developer, and what the property would like on completion. Thankfully, with the latter, developments in the market and technological advancements allow to partially unveil this mystery, and give investors a better idea of what their finished product will look like, helping them to have confidence in their purchase.
One great example of this is RW Invest, who in their student property investment offerings throughout Liverpool, utilise Virtual Reality viewings to investors, giving them an immersive, authentic feel of what their property will be like on completion. They also only work with developers with a proven track record.
This tech solution is also good for international investors, who might not typically be able to get over for a viewing.
What can I do to ensure my off-plan investment strategy is a secure one?
Thankfully, in the modern-day, off-plan development projects are a lot easier to judge and more visible, which should give you some peace of mind. However, there are still some steps you should take to ensure that you're getting the best value investment possible. Here are some things to consider: