Why Off-plan Property is the Best Investment

Off-plan investment refers to the reservation of a property during the planning or early stages of construction. The advantage to you, the property investor, is that you can secure the property at a price well below the market rate. The property inevitably increases in value once construction reaches completion.

Checklist of Benefits:

Purchase property under the market value

Use only a small deposit to benefit from capital growth

No mortgage repayments until completion of construction

Great flexibility in financing the newly-built property

Allows rapid development of a property portfolio

The earlier you buy, the cheaper the property is!

And When You Use a Reputable Property Advisor:

The best investment opportunities are made available

All the research is carried out for you

Little time and effort is required on your part

An arm-chair approach to achieving investment success becomes feasible

Why Developers Offer Off-plan Property

The property developer is contractually required to sell a certain number of units before construction may begin. In fact, the bank will only insure the property development upon the guarantee that a percentage of the units will be sold before construction may begin. As a direct result large discounts are available to promote early off plan sales.

It is also important for investors to remember that only a small percentage of the total property price in required to secure an off plan unit. You can usually expect the deposit to be only 25 - 30% of the price. The total balance is due only upon completion.

It is however possible to sell your unit before completion, gaining a return that reflects the increased market value, while only investing 25 - 30% of the discounted price. This is an increasing popular investment as you can achieve maximum gains on a short investment and are able to free up capital for your next off plan investment.

As with all types of investment, timing is important, particularly when investing in emerging markets. An emerging market offers an opportunity to capitalise on discounted development prices in an economy that is promoting low unit cost to encourage foreign investment. However, it is vital that once you find a suitable investment, to act quickly. The worldwide property investment market is fast paced and highly competitive.

Whether you are looking to secure an additional source of income, make a quick profit, provide for your retirement, or build a substantial portfolio, we can help you achieve your goals!

© Property Investment Expertise 2007