UK off plan property investment is a convenient and hassle free way to get exposure to the UK property market. Off plan property is a property before completion (sometimes before beginning!) of construction.
London Property helps investors to maximize return on off plan property investment by sourcing off plan property in high growth areas (regeneration areas which are well connected to fast growing employment centres) with long time to completion of construction (1-4 years), exceptional payment terms (5-15% deposit before completion of construction), deposit guarantee, sometimes up to 15% discount off independent valuation, and convenient legal structure of a deal. Due to financial leverage, 10% deposit before completion of construction returns 100% on invested capital when property prices increase by 10%.
Off Plan Property: Advantages
Off plan property is usually bought by putting down 5-15% deposit before completion of construction. Therefore, investors can benefit from property price growth with a financial leverage: 10% property price growth on a property reserved for 10% of its price returns 100% on invested capital.
Off plan property can be bought as a medium to long term investment or it can be re-sold before completion of construction. Upon completion, if an investor decides to keep a property, he can pay a balance with a mortgage or his own funds and rent it out (we can arrange the latter).
If an off plan property is re-sold before completion of construction, an investor would save on a stamp duty (1-4%, depending on property value) which is paid only for constructed properties.
When buying an off plan property, an investor usually benefits from a structural guarantee issued by the National House-Building Council or a similar organisation.
Off plan property is easy to buy (an investor effectively buys a contract), there is no need to get a mortgage, no need to manage a property and let it out.
When completed, a new built property is easier to maintain, manage, rent out, sell, and easier to get a mortgage for it at better terms.
When buying an off plan property, an investor can choose the best units, views, finishing, etc
Off Plan Property: Risks
There is no guarantee that an off plan property will increase in value until completion. But this risk exists when buying any property or any asset. London Property reduces this risk by recommending off plan property in high growth areas which are expected to perform better than other areas.
We source off plan property with long (1-4 years) completion dates to give investors more time to benefit from price appreciation, and sufficient time to re-sell.
Theoretically, a developer may become bankrupt or do not complete a construction in time. London Property strives to work with reputable developers with a proven track record and a deposit guarantee.
Off Plan Property: Our Services
London Property helps investors to increase return on off plan property investment by sourcing off plan property in high growth areas (regeneration areas which are well connected to fast growing employment centres) with long time to completion of construction (1-4 years), low down payment (5-15% before completion of construction), deposit guarantee, up to 15% discount off independent valuation, and convenient legal structure of a deal.
We do extensive research using publications of leading consultancies and development plans of local authorities (for example, "The London Plan", the strategic plan for the development of London in the next 15-20 years) to recommend areas for property investment. For example, we recommend property investment in Stratford (area of construction of the Stratford City and of Olympic Games 2012), Canary Wharf (the fastest growing business district of London), and Greenwich (strategic location relative to fast growing employment centres in Canary Wharf, Stratford and Greenwich Peninsular). In selected areas, we search for the best property in terms of location, price, payment and legal structures.
London Property offers a wide choice of UK off plan property with prices starting from GBP 80,000 for 2 bedrooms modern apartments located few hours away from London.
Because of high volume of investment by our clients and established relationship with developers, London Property frequently receives information and offers on forthcoming property launches before their public launch. This privileged access is beneficial for pre-registered investors as attractive projects may be sold up to 60% during the first release. Registered investors can receive property information before its release to the market and select the top choices. Register to receive project news
It is very hard for an investor to find a right off plan property investment as it requires understanding of development plans of authorities, prospects for various regions and areas, access to attractive projects, understanding of various legal and financial deal structures, relationship with developers, and allocating significant time and effort for due diligence. We at London Property will be glad to use our expertise and help you to build your profitable property portfolio.
Off plan property: more about our services
Off plan property: Olympic Games 2012 and construction of the Stratford City
Off plan property: the fastest growing business district of London
Off plan property: strategic Greenwich
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