What is your experience of off-plan property investments?

Demand for off-plan property investment has grown significantly over the last decade. With many developments not requiring final payment until the property has been completed, what has been your experience of this type of investment?

 

One thing I would say, is that you must be vigilant once the build has completed that they have allocated the exterior land properly and you know the exact extent to which you own! We have found some new developers slightly disorganised and misinformed with regards to this! Check it out with the Council first and make sure your Solicitor knows what they're doing, too!

 

Good point. At the very least you would expect developers to know the area of land they are selling to you!

 

The further down the investment chain you part with your money the greater the risk but the rewards are also potentially greater. The simple risk/reward ratio.

 

Exactly!! It's worrying!

 

Never invest with the idea of making a quick profit before the development is even finished. Plan for the longer term and if you get the chance for a short term profit then consider taking it.

 

Good advice...would you suggest generally discarding the idea of short term investment in new developments? Are they more for the longer term?

 

Whatever people say it is NEVER wrong to take a profit although the bigger profits seem to be reserved for the longer term.

 

There seems to be a fair bit of off-plan investment in areas like Manchester:-

https://www.propertyforum.com/indus...rs-property-market-why-you-should-invest.html

 

Fair point...it almost seems like a dirty word yet surely every property investor or any investor for that matter is in it for a profit!

 

Pick a prosperous region of the UK, Manchester for example, and a development which appeals to well off young professionals and you could/should do very well

 

Quite true...Would we say serviced apartment blocks are the way to go? There are certainly a multitude of companies offering tempting deals to investors...

 

People are inheritantly lazy - if you do everything for them at a decent price they will come

 

The latest generation have been spoon fed all their lives - give them everything they want in your property development and you will have them eating out of the palm of your hands

 

I am currently looking at these in Liverpool, has anyone any experience of buying into these?
50% deposit then guarantees you 3 years rental income... RW invest the company is called..
thoughts chaps/lady's?
cheers

 

Liverpool is a property market which has been very very bouyant in recent times and it looks like it could continue for some time to come.

 

These have been going for the last 9 years or so in Liverpool and I am also interested as the rental market is strong there especially in the Docks area and the regentrification is prolific so I am like you...dying to invest and I have been dilly dallying about it for probably too long!

 

Off-plan property investments are not for those new to the property investment! There are many potential challenges which sometimes catch out seasoned investors. Be careful!

 

I personally have prospered tremendously. As most of the members here are saying, If it is the right location with the right cash flow forecasts it can be very profitable.

 

Manchester, Liverpool, Birmingham, Newcastle, Dublin, Berlin, Lisbon. All fantastic investments.