Property investment is a long-term venture that keeps attracting new investors. As investors explore multiple options, off-plan property investment is progressively gaining favour with those seeking profitable alternatives. Every investor is focused on maximizing the returns on their investment. As you try to figure out the best investment options, you can also utilize the services of well-established property consultants like Thirlmere Deacon for sure returns.
What Is Off-Plan Property Investments?
Property qualifies as an off-plan investment if you purchase it while in the process of construction or before the construction kicks off.
What Is The Main Reason Investors Prefer Off-Plan Property Investments?
Most investors prefer this investment route because it allows them to purchase the property at a fair price below the current market value. They can then develop the property to bring it to completion, or allow time for the property’s value to appreciate and then sell it at a profit.
Before you go ahead with off-plan property investment, you should keep a few factors in mind about the real estate industry in 2020. These things will serve to guide you in order to secure the best possible deal.
Know The Risks
Even the most lucrative investments have risks. It is one of the reasons you should equip yourself with sound property investment advice. Equally, off-plan investments also come with risks. Prior to placing your money in a property, know the pros and cons that are involved. Engaging with an untrustworthy dealer can turn a deal sour. So you need to develop an awareness of the risks to be able to devise mitigation strategies.
Understand The Different Types Of Off-Plan Property Investments
It usually feels more comfortable to invest in a familiar niche. As there are different types of off-plan properties, understanding their various categories in the market will guide you to choose the one that best suits your interests. The two main categories of off-plan properties are residential or commercial. Residential off-plan properties could include residential flats and student hostels. Commercial off-plan properties could include office premises and business units to let. You can choose any line of investment depending on your interests and prospective market demand.
The Location Of The Property Is Key
Location is one of the main parameters that determine the viability of the off-plan property. In 2020, it will play a major role because it will mean the difference between getting returns in time or holding on for another decade before you can realize gains. Begin by examining the surroundings to ensure it would be appealing to your buyers if you are purchasing residential apartments. Properties at prime locations have a higher chance of quickly appreciating in value. A feasibility study of the market will put you on the right track to getting started with a good property location.
Off-Plan Property Upward Mobility
One of the key considerations for engaging in any kind of investment is the ability to predict the future. Trends in real estate property development indicate continued overall, albeit slower, growth in this sector. The demand for off-plan properties is also likely to keep rising as the real estate industry keeps evolving.
Assess The History Of A Property Developer
Dealing with a reputable property developer can increase the chances of landing a fair deal. As you think about off-plan property investment in 2020, checking a developer’s portfolio can guide you in determining their legitimacy. If you purchase a property in progress, you need certainty that it is at least in good standing. If a property developer has a dark past with a questionable reputation, then you need to rethink your choices before engaging them.
Always Verify The Existence Of A Property
Not all investors are within physical reach of a property to allow them to check whether it actually exists. Some investors may even be battling court cases because they engaged in a contract with a party running a fake sale. It is better for you to enlist a close party to verify the existence of the property of interest before you make any advances towards acquisition. You can also engage reputable property dealers to assist you. Property dealers do the hard work for you while adhering to legal procedures, and finally, place the title of the property in your hands.
Transparency Will Set The Scene
It is not uncommon for property sellers to hide information when finalizing an offer. However, authentic off-plan property developers would practice transparency and provide you with all relevant information about the state of their properties in 2020. Complete and accurate information can influence a buyer to either purchase a property or move on to the next option.
Understand the risks involved and the types of off-plan property investments before you invest. Location is key to taking advantage of the ever-rising property investment opportunities. Assess the past performance of a developer, verify the existence of the property, and always make it a point to maintain transparency in such transactions.