April 6, 2008

Off the Plan Property Investment

Property investment has been the secret money garden for property professionals and institutions for many years. However, things have changed and now anyone can enter the investment property market and let his money work for him.

Of course, you should gather some knowledge about property investment in general as well as for the different investment plans before jump into the deep water. Moreover, you will surely need help from a financial professional at some point.

We have compiled a brief guide about off the plan property investment benefits to give you more information about this type of property investment.

What is an Off the Plan Property Investment?

In essence, an off the plan property investment is a property sold before it has been completed. There are residential and commercial off the plan property investment opportunities that become available daily; you just need to look around to find the profitable deals.

Benefits of an Off the Plan Property Investment

Many investors look for and deal specifically with off the plan property investments because of the great benefits this kind of investment offers. In general, an off plan investment property can be bought with great discounts compared to the same completed property. Developers and builders would offer discounts as investors are practically funding the development of the property. The value of the off the plan property investment continues to grow while it is being build. This way an off the plan property investment is not only beneficial because of the discount but because of the capital growth.

Another significant benefit of any off the plan property investment is that you will always buy a property below its market value regardless of the property market state. Moreover, in case the market collapses you are still on the safe side as you have bought your property with over 15% (typically) discount and you will not loose money.

Finally, off plan investment properties offer the higher return on investment - it can be up to 40% depending on the type of the property and its location.

Risks Regarding Off the Plan Property Investment

As with any other property investment, off the plan property investment comes with some risks involved. They are mainly connected with the property value (if it is going to go up or down) and the financing of the investment.

The good news is that you can avoid risks by following these simple property investment tips:

* Make sure you are making your off the plan property investment at genuine off market prices.
* Buy the off plan property at the early development stage to get better discounts.
* Try to buy directly from property builders as you will cut the intermediaries costs and will get much better discounts.
* Choose the location carefully - it should offer good prospects of value growth
* Even if you are not planning this to be a buy-to-let investment, your property should be situated in a high demand rental location

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