So is there a way to own a property or control property without having a mortgage? Absolutely, there is, let's take a look.
So there's many ways to actually do this. But one of my favorites is through Off Plan property. And what we mean by that is quite simply, you buying a property before it's built, so you're buying it off the plan. And what you do you buy it at one price in the anticipation that the price over time is going to go up. Okay. So you actually exchange equitable title for that property. In other words, the price is set that you're going to pay for that property for whatever period that is. And then obviously, if it goes up where you own that increase, and that's one of the great ways that Off Plan can benefit you.
Now, obviously, what you're gonna do at that point of exchange is pay a deposit somewhere between probably 5% and 25%. I know there's more, you know, but the reality is, is that it's probably around that 10% mark is where most places will be or most developers will do. But the reality is you're changing, you're exchanging equitable title there. So when he increases and any losses, okay, we'll talk about in a sec, but any increases you own over that period, and let's say it takes three years to build, and let's say the markets rising, fantastic, great, you ended up with a property that is valued at more than you paid for it, okay, which is good, and then come completion, that's when you change exchange legal title to the property at that point, okay. So that's one of the great ways of owning a property or controlling a property without having to have a mortgage, you get the mortgage on completion, okay.
Now, some people have progressive payment plans, some developers have progressive payment plans. So there is variations of this. And as with everything in property, there's 1000 different ways to do it, you need to find the one that works for you. Now, interestingly, is over those three years, any, this is the price the valuation at the end. Now, most of the time, you can't get that valuation straight back out. So what you have to do is you've either got to buy it, and then hold it for six months, and then look to remortgage it, or what you could do, which is a strategy perspective, is you could and this is, you know, you can buy it, you can flip it before completion.
So this is one of the benefits of this too. If it's gone up in value, likely, you're likely to be able to find somebody to buy it at that increased price, or maybe even give them a discount. So encourage them off what the valuation is. But then you can take the difference and negotiate, you negotiate that, you can take the difference either upfront, or upon completion, depending on the individual, whether they're getting a mortgage, and those sort of things. So there are some variables there. But it's a great strategy for the right market.
Now, obviously, because you're set the price there, you own that price, you own that equitable title, if the price goes down, well, then you own that, too. So over between exchange and completion, it comes down wood, now you own that price. And obviously, you're still gonna have to pay that price even though the valuation is based on this, which means you may have to top up your mortgage.
Okay, so let's have a look at a quick strategy. So quick strategy with this with a lot of people what they do in when times are doing really well, they'll buy two, they'll flip one, take that profit and then apply that to that one. So they end up getting a property for free or a contribution towards that property.
It's a great strategy in the right market. And as always, we've got to pick the right markets, okay. Otherwise, we could run into problems. But guys, if you need any help with that, or you want to know anything further about off plan property, new build property and where the hotspots are, where the regeneration areas are, then give the team a call on 02079236100. Alright guys, have a great day. See ya.