When making any investment, it’s important to understand what the prospective benefits are of placing your money into a specific project. Although you may just have return on investment at the front of your mind, knowing the reasons behind why this investment is worthwhile are vitally important – and off-plan property is no exception to this.
If you’re looking for some insights into your next investment opportunity, find out what the key benefits of investing in off-plan property are with our simple guide.
A “lower than market value” investment
One of the key benefits of investing in off-plan property is that an investor can secure a lower than market value purchase price. This is often due to developers wanting to reach a certain level of sales ahead of project completion, so make purchasing a property through them at a price lower than market value a more lucrative proposition to investors.
A developer may also offer potential investors a “bulk buy” discount incentive for those looking to purchase multiple properties at any one time, giving investors an even more competitive price.
Potential of capital growth
House prices in the UK are accelerating and currently showing no signs of slowing down. From an investor’s perspective, this presents an opportunity for any property investment made to grow in value, thanks to there being a proactive marketplace.
According to Savills, the housing market in the Yorkshire and Humberside region is expected see a strong growth in the period 2022-2024, meaning there is a strong possibility for capital growth on any off-plan property investment made with one of Citylife’s developments in Leeds.
Those who invest in off-plan are most likely to benefit from capital growth. If you’re purchasing a property at a discounted market rate ahead of build completion, once the property is completed in (for example) two years’ time, you’ll reap the rewards of its increase in value.
Rental yields and demand rising
As well as the potential capital growth of the off-plan asset, investors can also benefit from the continuing growth in rental yields and demand for rental properties in premium locations.
Across the UK, strong increases in rental yields are forecasted over the coming years. The Savills’s Residential Property Forecasts suggest that, when excluding London, rental growth will rise by upwards of 15 per cent by 2025 which is good news for those investing in off-plan property.
Alongside this, there has also been an increase in renter demand for city centre locations – in Leeds, Zoopla reports there has been a 12 per cent rise in demand – which, in turn, has created a short supply in high-quality rental accommodation. This is a huge benefit of investing in off-plan property as, most likely, any property within a central location would be taken up quickly by a potential tenant.
A guaranteed high-quality product
With an off-plan property investment, you’re purchasing a new-build apartment so having high levels of quality are guaranteed. New-build properties need to meet environmental and specification requirements which means you’ll be investing in off-plan property that ticks all the boxes when it comes to being modern and high quality.
Having this quality can also come as a benefit to your potential tenant, as these high standards can lead to cheaper utility bills, so will make your property stand out against any potential rental competition.
The lucrative benefits of investing in off-plan property
If you’re looking for a new investment opportunity, opting for an off-plan residential asset class brings with it a host of benefits to deliver a strong return on investment. From purchasing a product of the high standard to rental yields rising, an off-plan property investment can prove fruitful for your original outlay.
Citylife is creating new high-quality residential buildings in Leeds, across premium city centre locations, perfect for investors seeking new investment opportunities in a fast-growing city.
Find out more about our live developments of off-plan investment properties in Leeds here. If you’re interested in investing in the off-plan property Citylife is developing, get in touch with us today.