Of all investment opportunities available for women, property investment can be one of the most lucrative assets.
And off the plan properties especially present a range of benefits. So what does it mean to ‘buy off the plan’ and how do you go about it? Read the below to find out more.
What Is Off The Plan Buying?
Buying a property off the plan basically means buying an investment property that is not constructed yet. Therefore, those looking to invest will make their decision based on the plans from real estate developers.
The majority of property investors want to purchase a property off the plan in the hopes of obtaining substantial capital gains. Those looking to invest can obtain such capital gains through the incentives provided by the developers, which are implemented to entice investors to buy their investment property off the plan.
What should I consider when I buy an off the plan property?
Buying a property off the plan will give investors the opportunity to buy a property at a discounted price. However, before you obtain such a property, you will need to look at the actual property value and potential capital gain.
According to IBuyNew when buying off the plan, it is essential to get access to investment property sales as soon as they become available. Therefore, it can be a good idea to register with a well-known real estate developer, who can give you access to the latest off the plan properties on the market.
Once you have registered with a real estate developer, you will have to do some research to reduce some of the risks that accompany property investing. Most property investors aim to let the property once it is built, which makes doing your homework all the more important. While you are doing your research, be sure to focus on the demand for rental properties; this way you can ensure you will be able to let the property once it is build and receive a reasonable return from it.
During your research efforts, you will also have to examine the location of the property. There are many denominators that make an investment property more or less attractive. Denominators that can have a negative influence on the value of your investment property are crime rate, no access to public transport, a lack of education in the area and an overall low market value of properties in the area where your investment property is situated. Even though most real-estate agents can provide you with a clear overview of an area, it is still best to do your independent research as well.
In addition to researching the area where your investment property is situated, you will also have to do some research into the price of similar properties in the area. If you compare prices in the area, you can have a better idea of the return you could get from letting or selling the property later on.
What are the steps to purchasing an Off The Plan Property?
The first step towards buying an off the plan property is finding the right property in the right location. The actions that should be undertaken before you find such an investment property, have been mentioned in the previous section.
Once you have found the right property, it is time to arrange the necessary finances for the purchase of your new investment property. Acquiring the finances well in advance can avoid problems during the acquisition and give you access to the finest properties immediately. Once you have acquired the necessary funds, you will be able to reserve the investment property and pay the reservation fees.
After the reservation fees have been paid, the investor can acquire a valuation from an independent surveyor. The surveyor valuation will be needed by your mortgage lender once you have put in an offer on the investment property. Then, make sure all the mortgage paperwork is complete.
Given the fact that many of us don’t have the time to deal with all the paperwork that accompanies an investment property and mortgage, it may be a good idea to hire the services of an experienced mortgage broker. An independent mortgage broker can help you with all the paperwork and even give you some valuable tips regarding property investment. There are many mortgage brokers around that specialise in investment properties, so their insight could be very valuable to you.
Two weeks before the completion of your investment property, be sure to acquire an independent survey. An independent survey will ensure that your property does not have any defects and that it is ready to let or sell upon completion.
Those who are looking to invest for the first time might need some additional assistance from experts with a lot of experience in the property investment market. Jumping into the investment property market can be very lucrative, but requires the necessary knowledge to reduce the risks and increase capital gain.
Disclaimer: Any advice given is general only and has not taken into account your objectives, financial situation or needs. Because of this, before acting on any advice, you should consult a finance professional to consider how appropriate the advice is to your objectives, financial situation and needs.