The benefits of buying off plan overseas
- In a buoyant market in a good location, you are gaining capital growth on the whole value of the property, not just on your deposit. That's one of the main reasons why buying off plan property is so popular with investors.
- You can release funds in stages over time, instead of all at once.
- The property will probably grow in value before you have to pay for it, yet you will only pay the price agreed at the start.
- If you receive a discount or incentive from the developer, it means you're buying at less than market value - giving you an instant gain on completion and/or resale.
- You can usually choose certain design features at the property, e.g. kitchen surfaces, flooring, etc.
- You can 'flip' the property, i.e. sell to another buyer before completion, once it has gained some value. It means you don't have to put any more money down or pay any stamp duties or equivalent taxes. (However, you need to be confident you can resell - and that there are no restrictions on this in your contract.)
- If a property takes a long time to complete, and the market continues to rise, you gain cumulative equity growth - every single day of the process.
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Seek & Buy Properties helps you evaluate different markets for the best return on your investment.
Simply contact us today and tell us about your plans.
The risks of buying off plan overseas
- On completion, new developments may compete with yours and reduce your scope to resell or rent out your property.
- Your deposit is tied up until you complete or re-sell. Make sure it's protected in the event of the developer going bust. Find out what kind of track record the developer has when it comes to any 'snagging' repairs, too.
- Make sure all official planning permissions are in place. If not, the whole development may be stopped.
- Research as far as you can the realistic market value for the property on completion. There is always a risk it won't gain in value at all. If the economy or government where you're investing becomes unstable, it could affect property values.
- Permanent rental incomes can lag behind property prices. It depends where you're investing. Make sure your figures stack up well. You may not be able to remortgage to release equity if rents have not caught up.
- If you're planning to remortgage, watch out for redemption charges.
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You can spread the risk and increase your portfolio by investing in commercial off plan property.
At Seek & Buy we use our experience to help you avoid the pitfalls of investing off plan. We'll show you how to weigh up the risks and the benefits in specific markets, so contact us today to find out more.
We provide a friendly and professional service and want you to feel entirely satisfied
with your decision before you complete.
We will not push you into buying something that is unsuitable or doesn't meet your
investment requirements.
Please contact us today to find out more.
"And remember, there's no obligation at all on your part."
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And if you'd like to pop into our office in Stamford in Lincolnshire, you'll enjoy a warm
welcome when you arrive and a lot more knowledge about investing off plan when you leave.
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