What does 'Off Plan' mean?
Off Plan
Many people choose to buy 'off plan'. This means they are purchasing a property which has not been built yet, they are making their decision to buy not by viewing the building but 'off the plan'.
Off plan buying is extremely popular with investors as it includes some element of risk. You cannot tell, for example, exactly what the view from the window will be like or exactly how bright the property is.
This risk element means prices are generally lower as there are a more limited number of buyers. However in recent years too many purchasers have assumed this and some off plan properties have sold fore above the current market value, rather than below it.
Search Results for 'Off Plan' in How to Really Buy a Property
Chapter 8:
Buying to Let / For an Investment
"... can look profitable to start with but end up costing more than they make;
How to know if an area is really 'up and coming';
Why buying Off Plan used to be profitable;
The reality of buying off plan;
The pros and cons of property investment companies;
How to be prudent and avoid loosing it..."
"... end up costing more than they make;
How to know if an area is really 'up and coming';
Why buying off plan used to be profitable;
The reality of buying Off Plan;
The pros and cons of property investment companies;
How to be prudent and avoid loosing it all.
There is no end of books..."
"...Due to the continued underlying strength of the market it is difficult to buy a property that will offer you a continuous income stream and rise rapidly in value. Buying Off Plan has also ceased, in most cases, to be a profitable avenue (see below). This means that before you start looking it is worth considering what you actually want:
..."
"... to £264,000 between 2000 and 2004. That's a fourteen percent return every year before you have even hung the 'To Let' board outside.
- Buying Off Plan -
Buying properties before they are even built used to be a very popular and very profitable way of making a living. It is still very..."
"...Buying properties before they are even built used to be a very popular and very profitable way of making a living. It is still very popular, just not very profitable. House builders had always, in the past, accepted the practice of selling Off Plan at a lower price than comparable properties that already existed in the area. This was in return for buyers who were purchasing something they couldn't see and hoping it would turn out nice. Modern computer technology and advanced show flats have allowed visualisations to become much more detailed, removing much of the risk buyers used to face. Further more popular books trumpeting the profits of buying off-plan have swamped the market with private buyers keen to believe there is guaranteed cash at the end of this rainbow.
..."
"...If you are buying Off Plan be sure to check property prices in the area and no matter how glossy the brochure and how glitzy the show flat is ask the cold hard question: Would I be better off buying something that has already been built? As a double back up make sure you can cover the mortgage for a few months should your purchase be impossible to sell or difficult to rent.
..."
"...This was a development that spectacularly failed to sell well due to the very high prices demanded for Off Plan properties. The builder did however sell some apartments and in order to improve cash flow completed these first. As a result the flats became available while the communal courtyard was still rubble, the car park was covered in building materials and the whole development was covered in scaffolding.
..."
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