Clever investors realise the potential of off-plan property. Purchasing a house before it’s even been built offers the chance to not only save a lot of money, but have some level of control over how the house will look when it’s finished; which is invaluable when tailoring it to suit your prospective tenants.
If you’re considering buy-to-let property for sale, and want to explore the option of purchasing an off-plan home, here are some questions you need to ask.
Questions to Ask When Buying Off-Plan
- Are the developers reliable? Before visiting the developer, it’s important to do your research. Find out what their reputation is like in the industry, and what sort of projects they’ve worked on before. If possible, seek out feedback from other investors – this will give insight into whether they’re the right developer to invest with or not.
- What savings can be made? Usually, developers are happy to offer a discount of some sort. It’s also vital to remember that, while the property is being built, house prices may be going up in the area; but you’ll still be paying the original amount you agreed on. If you purchase an off-plan house through a property investment agent, you’re likely to save even more, so it’s worth exploring your options.
- What happens if things don’t go according to plan? It doesn’t happen very often, but on occasion, things can go wrong with the build. For example, the developers may go bust, or the build might be delayed for some reason. Find out exactly what happens if the worst occurs, and whether you’re financially covered.
- What rental yield can you expect? As an investor, you’re looking for a property that not only offers great capital growth, but a solid rental income too. Find out what other tenanted properties in the area generate, and let that be your guide.
- Are there solid guarantees in place? When buying an off-plan house, you should be offered guarantees and warrantees; usually covering the first six to twelve months after the build is complete. Check these guarantees thoroughly, as they’re what will protect your investment if anything hasn’t been completed to standard.
- Check your mortgage. If you’re buying the house with a mortgage, be aware that the developers will want to see a mortgage agreement in place before agreeing the purchase. You’ll also be expected to pay between 5% and 10% as a deposit. Be warned, many lenders will only keep the mortgage offer open for six months. If the build runs for longer than that, you’ll have to reapply.
The Buy2Let Shop in Bromley
There are many benefits to buying an off-plan property – especially if you’re looking to maximise your returns. A property investment agent can help you to increase profits even further, as they’ll often buy off-plan properties in bulk at a reduced price, then pass the savings on to you.
To find out more about how The Buy2Let Shop can help you boost your ROI, visit the website today.