buying off plan

Published: 16/12/2022

1. Get in early: Developers often secure sales before construction is completed by advertising the project's desirability. As an early bird, you can negotiate a fair price and secure a better deal, especially when there is a drop in the value of the sterling. Some developers also offer discounts for investors who purchase multiple properties.
2. Invest for future growth: Buying off-plan with a completion date of two years typically shows increased capital growth in line with the market. This can add value to a property, especially if purchased at a discounted price. It also means you can maintain existing properties and invest in new ones in the future.
3. Spread the cost: Most developers allow you to make staged payments when buying off-plan, which removes the stress of finding a large deposit. This will enable you to keep funds in the bank for as long as possible, and the interest accrued can help purchase white goods or furnishings.
4. Personalise your property: When buying off-plan, you have a blank canvas and can tailor your property's design to suit you. Getting involved early means you have more control over the finished product, and developers are often flexible, offering options to suit every budget. They may also arrange a furniture pack, so your property is ready on day one.
5. Safety first: New builds come with standard safety features such as fire doors, smoke alarms, and fire-redundant materials. Most developments also offer high-level security locks, alarm systems, and a 24-hour concierge service.
6. Parking spaces: Parking spaces can be reserved at the time of purchase, saving you money compared to buying one later.
7. Location, location, location: When buying off-plan, you can generally choose the location of your property in the development. Factors like aspect and balcony or terrace can influence rental yields significantly.
8. Up-and-coming areas: Buying in an area that is being regenerated or about to regenerate is a wise move. This usually means that transport links, shops, schools, amenities, and public spaces will improve.
9. Warranty as standard: Most new builds come with a 10-year National House Building Council's (NHBC) Buildmark warranty. This covers costs arising from failure to meet construction standards and ensures your property is of a high standard. However, check the small print as warranties vary by the developer.
10. Long-term benefits: Finally, one of the main advantages of buying off-plan is the guarantee of ownership of a property that meets your tastes and standards. Others may have to acquire remaining properties at market value or above, but you can relax knowing you have a property that meets your requirements.