If you’re looking for your next investment opportunity, you may see opting for an off-plan residential property as the best route to take to gain strong return on investment. However, do you know exactly what an off-plan property is, and what the investment process entails?
Find out more about what off-plan property is and why it is an attractive proposition for those looking to invest in property with our guide below.
What is off-plan property
Purchasing an off-plan property means you’re committed to buying or investing in a property before the build has been completed. In most cases, off-plan property is invested in before the construction has even begun, however this can take place during the build process.
Off-plan property is also often purchased at a discounted rate, compared to the price which the property would be valued at once completed. The process of purchasing off-plan property often involves placing down a reservation fee to secure a property, before paying the deposit or full value, depending on the purchase method.
When multiple properties are being purchased as part of an investment portfolio, the developer may offer a discounted ‘bulk buy’ rate. This is what makes investing in off-plan properties a lucrative proposition for investors.
Why invest in off-plan property
There are a host of reasons why you should consider off-plan residential as your investment asset class of choice. Opting for this type of property is often regarded as reliable investment, as there is currently demand from tenants for quality dwellings in premium locations such as city centres.
Take Leeds as an example. Renter demand has increased by seven per cent in the city and more than 3,000 new dwellings are required each year to meet this tenant demand.
These figures make our Sky Gardens development in Leeds city centre perfect for investors looking for their next opportunity. Not only is the development at the heart of one of Leeds’s most ambitious and globally distinctive new neighbourhoods, Temple, but the apartments also offer more space, quality design and pay attention to the finest of details.
Off-plan property also offers excellent prospects as a long-term investment, thanks to the growth in capital the asset will see. As the investor will purchase at a lower than market value, they will get to reap the rewards of an increase in value once the build has completed, as well as any potential market growth which will have seen prices rise.
In terms of the property itself, as it will be a new-build or newly furbished plot, high quality is guaranteed which can also give an investor peace of mind.
Find the perfect off-plan property investment in Leeds
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.