6 Questions To Ask Before Buying Off-Plan Property

Investing your hard-earned money in off-plan property is one of the most high-reward routes for purchasing buy-to-lets and serviced accommodation.

Thanks to a unique set of benefits, interest in buying off-plan property has never been higher. 

In this article, we’ll explore the top questions to ask before buying off-plan property in the UK as property investment experts. From how much you’ll need to pay before completion, to the expected timeline.

What Does Off-Plan Property Mean?

Buying off-plan means purchasing a property before it’s fully constructed. 

While the building itself may not be complete, this typically refers to situations where construction has already begun and planning permission has been secured. 

You’ll be basing your decision on plot specifications and potentially computer-generated imagery (CGI) to give you a sense of what the final property will look like.

The Benefits of Buying Off-Plan Property

Some of the key benefits of buying off-plan property include:

• Invest in Areas on the Brink of Expansion

Regeneration projects often target areas with planned improvements in infrastructure and amenities. Developers are typically aware of these upcoming changes when selecting off-plan locations.

By buying early, you secure a property at a pre-regeneration price point, as the area improves, so does the potential value of your investment!

At Redmayne Smith, we’re pleased to offer our clients access to numerous investment opportunities in areas experiencing billions in regeneration. To find out more, book an investment consultation with one of our experts today.

• Capital Growth Potential

When buying off-plan property, you will often need to wait a few years for the development to be built and ready to be tenanted.

During this period, the value of your property could increase, especially if the development is situated in an area with rising house prices.

• Payment Plans

When you invest with Redmayne, you’ll gain access to exclusive deals that you won’t find anywhere else. For example, you could secure your property with as little as a 6% reservation fee, making it easier than ever to get started on your real estate journey.

Depending on the investment, the remaining deposit could be conveniently spread across a 24-month payment plan at a rate of just 1% per month. This is an exclusive deal negotiated for our clients only!

• Rental Demand

Did you know that the average UK tenant spends around two-fifths (39.1%) of their monthly income on rent?

New residential developments often experience high demand from renters, particularly in their first few years after completion.

When demand is high and supply is low, prices tend to rise. Off-plan investors can capitalise on this initial rental demand, renting out their properties at premium rates compared to existing ones.

6 Questions To Ask Before Buying Off-Plan Property

To successfully invest in off-plan properties, we recommend considering the following questions:

1. What Are the Biggest Benefits of This Property Investment?

As with all property investments, understanding the key advantages of investing in the area and the specific development is important. 

Conduct significant research and ask questions such as: what is the level of supply and demand in the area, what are the projected rental yields and what is the potential growth during construction?

2. Do I Have the Appropriate Funds?

You don’t need to be a millionaire to start investing in property. 

There are several ways you can generate the funds needed for an off-plan property. These include savings, a mortgage, selling an old property and withdrawing your pension. 

Alternatively, you could partner with a family member, friend or fellow property investor to create a joint venture. This allows you to split the costs and share the profits based on a mutual agreement.

3. What’s the Timeline?

Whether you’re buying an off-plan property at the beginning or end of construction, you’ll want to know the expected completion timeline. Larger projects will typically take longer, so, if you’re looking to avoid delays, you may benefit from choosing something with a quick projected turnaround.

4. How Can I Ensure That the Property Is Completed to a High Standard?

Part of your due diligence should be assessing the developer’s experience. Have they completed similar projects before? Were they finished on time and to a high standard? 

In general, projects completed by experienced property developers will progress smoothly. At Redmayne Smith, we follow a meticulous process and perform stringent background checks before partnering with a developer. We meticulously evaluate every project to ensure our clients receive the best possible deal, providing peace of mind and mitigating risks.

5. Is There a Warranty or Guarantee on the Property?

New builds typically come with warranties and guarantees covering structural aspects and finishes, providing peace of mind and protecting your investment against defects for several years.

6. What is the Developer’s Vision For the Community?

Developers often have a broader vision for creating vibrant communities with a mix of residential, commercial and recreational space, enhancing the living experience for tenants and ensuring sustained demand for the property.

At Redmayne Smith, we’re excited to offer our clients exclusive access to off-plan properties in some of the UK’s most dynamic cities, including Manchester and Birmingham. These thriving areas are poised for significant growth, with new developments set to transform their cityscapes.

Buying Off Plan Property | Let Us Be Your Guide

Off-plan developments are game changers. Why? Because these strategies generate a high level of capital appreciation and a stable monthly income. At Redmayne Smith, we’re dedicated to providing our clients with the best opportunities available. We only work with reputable developers, investing in the developments ourselves. We go the extra mile by arranging our client's visits to the development, ensuring you feel as secure and confident in your decision as possible. 

To find out more about how we can help achieve your investment goals and start building long-term wealth, please book a consultation call with one of our experts today!