Off-plan Property Investment

Buying ´off-plan´ means reserving a property on a new development before the property is completed, often before construction has started.

We command large discounts on the original price of the properties as we always buy the whole development, so you as a client will have substantial equity in the property from day one. The prices are always kept competitive at this stage as the developer needs to sell a large proportion of them so he can finance the start of the build.

As a client you purchase your property by reserving a plot and paying the deposit, usually around 10%. You can sell your property at anytime during the build or hold onto the property until completion, whereby you would finance the remainder by means of a mortgage.

For over 50 years property has proved to be the most consistent vehicle for investment, with values doubling every 8 years. Over the past 18 months the market in the UK has enjoyed exceptional capital growth of between 20%-30% per annum. Some regions have experienced even higher growth rates.

Property has always been a great long term investment, regardless of short-term market fluctuations. Consider these facts:

- Since 1956, the compounded average annual increase in house prices has been 8.5%

- According to nation-wide figures, the worst fall in the property market was 11% back in 1990.

- In the 32 years since the Department of Records have kept statistics, prices have risen in 28 years and fallen in only 4.

- According to the Office of National Statistics, rents have risen on average by 13% per annum since 1962.

So why now?

Property is a very valuable asset to have. For example, The Centre for Economic Research predicts that rental demand will nearly double inside the next ten years, becoming more profitable than ever before. It will continue to grow due to:

- Escalating house prices which are pushing buyers out of the property market, making them consider renting instead.

- Increasing numbers of students and single people are looking to rent as a means to maintain independence.

- Over the years there has been a loss of social stigma about renting. As well as an increase in disposable income has encouraged raise in property rental.

- An transient society with an increasing number of ´footloose´ families seeking mobility and flexibility.

When you consider all these factors this is an ideal time to get involved in the property market! Especially when you consider Housing Figures (2012) Study, which says that the average house price is set to grow from £101,161 to £300,643 by 2020. In other words, if you were to buy an average house today, you can expect its value to rise by an incredible 197% over the next 18 years.

It´s not hard to see that the sensible buy-to-let investing is an excellent position to capitalise on these trends over the next decade and beyond. You can cash in on escalating prices and generate excellent incomes from a steadily growing pool of renters.

To The left is information regarding property prices between the years 1984 to 2003. These figures clearly show the how property prices significantly increase over several years.

With the rental market set to expand by 40% in 2012, can you afford NOT to lock in your profits now as a Buy-To-Let investor?