What is off plan property investment?

Question

I have been reading up about property investment, but I am still a bit unsure as to what exactly off plan property investment is.

Answer 1

it`s a property that hasn`t been built yet, you see the plans and buy whichever property you want, some are more expensive than others, you have to be careful with buying off plan because the price they give is usually an estimate so it can end up being a lot more expensive, read the contract carefully.

Answer 2

Off Plan property investment is when you buy a property before is have been finished.  This means that you have the opportunity to benefit from capital growth while the property is being finished as well as buy the property at a discounted rate from the developer.

The developer is happy because he gets funding for the development of these properties and more.

When buying off plan it is important to consider several points, especially if you are buying abroad.

1. Does the developer own the land?  It may seem like a silly question, but if the developer doesn't own the land you could be dooped into a fraudulant scheme. You can ask for proof.

2. Does the developer have permission to build on the land? Make sure that you get some proof of planning permission.

3. What are the developers credentials? Ask to see some and ask other people in the industry about him - estate agents, surveyors etc.

4.  Visit a previous development and analyse the work and the furnishings. Get the opinion of a surveyor.

5. Find out how many of the purchasers are property investors as this could affect the resale of the property, especially if everyone wants to sell at the same time.

6. Location, location, location.  If it is all about the views with your property then investigate whether your property will still have the same views in 3 years time or whether planning has been permitted on the surround area.

7. End buyers needs.  Make sure that your buyers have the amenties that they need as this will influence their buying i.e.: shopping, market, nightlife, beach, hospitals, schools etc.

I hope that helps you.

Thanks

A

Answer 3

The simple answer is: when you buy a property that hasn't yet been built. You are literally buying it off the plans for the development rather than looking at the bricks and mortar first.

Answer 4

You are buying into a property that hasn't been built yet, it is still in the planning stage.

There IS money to be made with this type of investment.

Basically you are financing the build - then you either sell it on after it is complete or keep it.