When Is The Right Time To Invest In Off-Plan Properties?

Property Investment is a wealth plan that can outperform many other investment types. A combination of capital growth, capital allowances and taking advantage of rental yields makes building a property portfolio stable and lucrative. The property market regularly provides a stronger return on investment than the stock market or high interest-bearing savings accounts. 

However, amid the current economic climate with rising inflation and a cost of living that is showing no signs of slowing, some investors are questioning whether this is the right time to invest in property. 

Newer investors and those who have recently started building property portfolios particularly appear concerned that sinking funds into off-plan developments and new home construction may be nothing more than a fool’s errand. 

Does The Best Time to Invest In Property Exist?

It is notoriously difficult to time investments to bring the anticipated rewards. The property market typically cycles through 4 different stages:

  • Recovery
  • Growth
  • Over-supply
  • Recession

Insightful investors who can take advantage of each stage will achieve high profits. Using a cost averaging investment strategy is one option for mitigating risks as you grow your property portfolio.

Cost averaging spreads invested funds in equal quantities over an extended period of time to level out the highs and lows driven by fluctuating property prices. As property is a relatively slow-moving asset compared to things like stocks and shares, cost averaging removes the need for predicting the market and attempting to sink in funds at the ‘right time’.

Investing In Off-Plan Property

Investing in off-plan properties is a great way to build your portfolio. Investors are offered a broad scope when choosing a property to buy by purchasing during construction or in the construction phase. Some may think that purchasing Off-Plan means waiting years to attain an income from your investment, but some Off-Plan Properties offered by Redmayne Smith are much closer to completion that you might expect.

Off-plan homes and units are frequently bought as buy-to-let properties and owners have the advantage of acquiring brand-new homes at pre-completion prices. It is an attractive proposition for investors of all experience levels and buying properties off-plan can provide purchasers with:

  • Wider choice
  • Better price
  • New construction
  • High demand
  • Urban location
  • Positive yields

Combined elements often mean that off-plan property used for rental purposes can provide high yields with a minimal investment. Not to mention, brand-new construction projects or commercial conversions of this kind are typically located in densely populated urban cores in extremely high demand. 

Those working in big cities or locations with a wider metropolitan area often seek a home close to the office to reduce commute times, and large commercial areas have seen an increase in the construction of apartments and high-rise dwellings. Additionally, one and two-bed apartments are being favoured by young professionals wanting a combination of luxury, low utility bills and somebody else being responsible for the upkeep of the property.

What Should You Know To Invest In Off-Plan Property?

Building a strong property portfolio can bring the best returns when investments are made using a methodical and systematic approach. Mitigating risk by spreading investment costs can minimise potential losses while allowing lucrative rental income to be gained along with some other benefits:

Flexible rental terms

Off-plan units used for buy-to-let purposes allow flexibility for the investor. Properties may be purchased and used as long-term rentals or short-term rentals, and lettings may be self-managed or outsourced to a rental management company. 

Positive equity gains

Buying into new construction early often results in an equity boost once the work is finished with completed projects commanding higher market values than when in the construction phase. 

High rental appeal

Newly completed off-plan properties can be highly appealing to potential tenants. Along with being situated in prime locations, off-plan properties will have all the latest amenities and services which can be a big bonus to potential tenants. 


So when should you invest in off-plan property?

The answer is now! 

Don’t wait to buy property, buy property and wait. 

Investigate off-plan investments with Redmayne Smith to receive the backing of an expert property team that offers an end-to-end experience like no other.


Amy Boutle

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