A property investment consultancy says off-plan properties “are one of the hottest strategies right now.”
Redmayne Smith has analysed the advantages of off-plan property investment in the UK and why it is one of the best countries to invest off-plan in.
1. Instant Equity - sometimes
Off-plan investing is essentially a paperwork strategy. You can secure a property at a fixed price during its construction phase and by the time it's completed, its value has often surged, claims the consultancy.
2. High demand locations
The newest off-plan developments are thriving in cities grappling with severe housing shortages like Birmingham and Manchester. This is positive news for investors.
3. Quality tenants
Securing the right tenants is crucial in property investment. Off-plan developments often attract professional corporate tenants who are willing to pay a premium, reducing the likelihood of dealing with troublesome renters.
4. Serviced Accommodation
If you prefer not to manage tenants at all, serviced accommodation is also an option with off plan. Some companies offer fully compliant short-term rentals, leading to increased profits and significant tax savings.
5. Developer reliability
Choosing the right developer is paramount to safeguard your investment. Reputable developers provide client money protection.
Gordon Dutfield, chief executive at Redmayne Smith, comments: “Off-plan properties continue to be an attractive proposition for investors of all experience levels, providing purchasers with a range of benefits, particularly here in the UK.
“In a challenging financial climate, off-plan properties can help mitigate risks by spreading investment costs to allow rental income to be gained alongside the other benefits of off-plan such as flexible rental terms and positive equity gains.”