Buying off-plan property has become increasingly popular in recent years, and for good reason…
What is off-plan property?
Off-plan property refers to properties that have not yet been built and are sold before construction has started or completed. In the UK, the off-plan property market has been growing rapidly, with many investors looking to take advantage of the benefits of buying off-plan for buy-to-let purposes.
So, what are the benefits of buying off-plan property in the UK for buy-to-let investors?
One of the most significant benefits of buying off-plan property in the UK is the potential to secure a property at a lower price than it would be once construction is complete. Developers will often offer discounts or other incentives to buyers who purchase early, reducing the property purchase price.
Higher rental yields
Off-plan properties in the UK have historically delivered higher rental yields than completed properties. This is because off-plan properties are often located in up-and-coming areas, which offer strong rental demand, and can be bought at a lower price. Additionally, off-plan properties are often designed with the needs of tenants in mind, such as communal spaces and on-site amenities.
Potential capital growth
When you buy off-plan, you are essentially buying a property that has not yet been built. This means that you have the potential to benefit from any increase in property values between the time of purchase and completion. According to gov.uk, UK house prices increased by 10.3% in the year to November 2022. This capital growth gives investors great capital appreciation, in addition to rental income.
Brand new properties
Off-plan properties are brand new, which means that they are less likely to require maintenance or repair in the short term. Additionally, they are often designed to meet the needs of modern tenants, with features such as open-plan living areas, en-suite bathrooms, and high-speed internet connectivity.
To conclude, buying off-plan property in the UK with trusted brokers such as API Global, can offer a range of benefits for buy-to-let investors, including lower prices, higher rental yields, potential capital growth, and brand-new, maintenance free properties. If you are considering investing in property in the UK, buying off-plan could be a smart move.
There has never been a better time to invest in off-plan property. Contact your advisor today to find out more about Manchester investment opportunities.