In investment circles, the term ‘off-plan’ refers to a property that’s not yet built. Here, we take a look at the main reasons why off-plan developments are an attractive option for shrewd investors.
They’re less expensive
Many investors express interest in off-plan developments because they are typically sold at a reduced, and therefore highly competitive, price, paving the way for a significantly higher returns. It’s not unusual for properties to be worth tens of thousands of pounds more than they were originally sold for, particularly if they are being developed in a key area for growth. Your consultant will be able to help you develop an investment strategy that takes advantage of such opportunities.
They’re brand new
Off-plan developments will eventually flourish into brand new properties that will typically boast much higher specifications and better facilities than similar, yet older, properties in the same region. Having been specifically designed to appeal to the rental market, they are likely to offer spacious, well-considered interiors that have been decorated to appeal to contemporary tenants. These days, residents expect neutral décor and furnishings, free-flowing layouts and cleverly integrated storage space solutions as standard.
They’re easier to maintain
All of the property’s features, be they functional or purely decorative, will require little maintenance in the first few years of the tenancy. Furnishings will not need to be replaced for several years, perhaps even several tenancies (as long as they are appropriately looked after, of course); working appliances and modern, scuff-free fittings are only going to add to the appeal of the property, too, particularly if the tenant knows that he or she will not need to be calling upon the services of the maintenance team regularly.
There are no existing occupants
This is a major plus point both for tenants who are looking to move quickly and buy-to-let landlords who are keen to start seeing a return on their investment as soon as possible.
The property will attract a better tenant
All of these factors will help to attract interest from ‘better’ tenants – ie, those who are willing to pay for the prestige and overall convenience of living in a modern, fit-for-purpose property (and who are much more likely to look after it during their tenancy, leading to reduced repair and maintenance costs).
Surrenden Invest offers a wide range of exclusive off-plan developments to investors. Based in Ilford, Horizon, London offers exceptional value – its close proximity to the new Crossrail network is drawing record numbers of residents to the town, which is turn driving up demand. Discover how Ilford is set to benefit as a result of the ‘Crossrail effect’ and contact our consultants to learn more.