Property investment comes in many forms. The most typical is where the investor will choose an already built property in an area with potential. Then there are the “fixer-upper” property investors who look to purchase a property as cheaply as possible to then “flip” or renovate for a profit. More and more though, the off-plan investor is becoming more frequent.
In at the ground floor
With an off-plan, you’ll often find that you’re among the very first to the table. You’re likely to see plans that the public is yet to see. This provides a significant advantage as you’ve got an advantage vs when the properties are built and released to the general public in the sense that you can make an investment decision much earlier and without the demand that those who wait will experience.
The property developer will keep you in the loop with consistent updates as to how your investment is doing. This is often something that potentially worries investors. Still, good developers will commit that their investors will get at the very least, monthly updates as to the progress of the development. As most investors prefer to be “hands-off” this is just a reassurance that the build is commencing on-time and to specification. At the Heaton Group, we pride ourselves on the fact that we have completed every single development to specification. We’ve got a 100% hit rate with planning permission being approved and our investors are always happy with the final product.
Secure funding early
If you’re a cash buyer, the property developer is highly likely to offer a discount as it is the easiest and preferred method for developers to receive payment. However, if investors are looking to make a property investment with a mortgage (whether spreading around a more substantial cash sum into deposits or a straight-up first-time Buy-to-let mortgage), then off-plan gives you plenty of time to secure the funding for your investment as the property can be reserved. If property investors are looking at already built property, then they have to commit immediately, and the timeframes can be much slimmer than you find in off-plan investment.
As we’ve noticed with almost all our recent developments, tenants are practically queuing up before the construction is finished. This isn’t always the case with existing properties as every second the property is unoccupied is less revenue or return on your property investment. At the Heaton Group, we will always give the option to provide the investment as “tenanted” which means that it is offering a return immediately, rather than waiting for demand after the property is built. This provides the investor with the peace of mind that their profits will be immediate, rather than something they must secure themselves in the future. We, of course, do provide the option for untenanted if investors prefer to source their tenants. Still, with our own in-house lettings team, we can offer the actual “hands-off” investment experience.
If you’re interested in any of our developments, then please call us on 01942 251945 or email us at email@example.com.