So why would an investor choose to invest in a property that hasn’t been built yet?
By investing in off-plan rather than a completed project, investors can take advantage of cheaper pricing and flexible payment plans offered by the developers. In recent years, mortgages have become more unaffordable, so off-plan has emerged as an alternative to the traditional method of acquiring buy-to-let property.
By investing during an early stage of development, buyers can benefit from capital appreciation when the property is completed, especially if the location has been identified as a hotspot for demand and capital growth. This means key major cities in the UK are usually selected for these developments such as property investment in London, or buy-to-let in Manchester
As the property will be brand new, there is likely to be high demand from renters who are willing to pay higher rental costs for a modern and stylish home. These properties often attract affluent young professionals as tenants.
Another advantage of new-built properties is that they are very likely to be more energy efficient than older properties.
Purpose-built student accommodation is also a popular property type when it comes to off-plan investment. Consistent rental demand and high rental yields are some of the advantages of targeting student tenants.
