Want To Invest In An Off-The-Plan Property? Here Are Some Tips

Off-the-plan properties are not that many like to invest in. Though a risk, for those who invest see it as an opportunity to earn from the property even before it is constructed or completed.

Off-the-plan properties are those properties that have been announced but the construction work on them has not begun yet. There is no physical appearance of how the property will be. The investor has to rely on the designs or blueprints of how the apartments would look like. These are mostly apartments sold when project is in the pre-launch phase.

This is relevant for developers, too, as initial investors help finance the project and also make the project worth financing for the lenders.

On the other hand, for property investors, looking for substantial capital gains, invest here.  While investors get to buy the property at lower price when compared to an under-construction or ready-to-move-in project, the developer also offers certain financial incentives to the early investors. Investing at an early stage also gives the investor more time for the capital to grow and gain from it.

So, if you are also keen to invest in off-the-plan property, here are some tips for you:

Know the property

The property you are planning to invest in is just a design, so it becomes even more important to know everything about the property. Judge how much you could earn from the property going ahead. It is a long-term investment and must provide you with steady and growing income. Also, before you choose a property, make sure you do your market research well. Look for all possible properties, check on the neighbourhood, established and upcoming infrastructure, property price growth, vacancy rates, rents, employment statistics, and demographics. This will help you make a guided decision.

Know your budget

Before you pick on the property, set a budget. Be sure of the money you want to invest, as this will be a long-term investment that will give you returns from time to time. You would not want to be under a financial pressure for a long time.

Know how much time you have

By now you must be aware that an off-the-plan property is worth the investment only if you are ready to take the risk and invest for a long term. Before you invest, know that the minimum period you must stick to it is five years. You could stretch this to 10 years, too, if you want to get a good return on your investment.

Benefits of investing in an off-the-plan property

Off-the-plan properties are not just affordable for an investor to invest in, these are also likely to provide other benefits, too. These include:

*Higher rental return

*Lower maintenance

*Closer proximity to newly-developed social and civic infrastructure

*Lower vacancies

*Better security