London and UK Property Investment Blog

By Brett Alegre-Wood | [fa icon="calendar"] August 7, 2018

Why your best investment strategy could be buying off-market, off-plan property

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6 reasons to invest in the off-market, off-plan advantage

When you invest in property, there are several things that could give you an edge and help ensure that your investment property performs as you expect, propelling you to your financial objectives. Previously, I’ve written about why an off-plan property is a great investment strategy for all lifestyle goals. In this article, you’ll learn why buying off-plan property off-market could provide you with even better returns.

What is off-plan property?

Off-plan property is a property that a developer sells before it has been built. This is usually a new build, or it could be a conversion in an existing building (such as Riverside loft apartments created in disused industrial buildings or warehouses). The property developer usually sells these properties through sales agents or even estate agents.

When you buy an off-plan property, you will buy at a price based on the valuation on the day you buy off-plan. This means that if the value rises before the property is completed, you’ll turn an immediate profit.

In addition, you may also get a discount to the current market value. This depends upon a few factors, such as the current state of the property market, and at what stage of development you are buying.

(Watch my video “How do we get the discounts we get?” to see how we negotiate great discounts on an off-plan property.)

What is off-market property?

If you buy a property off-market, you are buying one that is not being sold publicly. It isn’t being advertised, and it isn’t being sold through an estate agent. This means there is less competition for the property, which could translate into a lower price.

In addition, very often off-market property offered on new developments is at an early stage of the development cycle. This means that you could get the pick of plots available. And the best plots attract the best rental demand and buyer interest, which should translate into higher rents and better growth in value.

6 reasons to invest in the off-market, off-plan advantage

Investing in off-market, the off-plan property allows you to:

  1. Buy at today’s value
  2. Negotiate a discount from today’s value
  3. Profit from any growth in price through to completion (which could be in as much as three years’ time)
  4. Benefit from buying the best plot available
  5. Take advantage of less competition from other investors
  6. Negotiate a possible further discount because you are buying off-market

How to access these off-market, off-plan property benefits

As well as sourcing off-plan property, we also sell off-plan property off-market. When we do, we consider what investors have told us about their investment objectives, the type of property they wish to buy, where they want to buy, and the financial numbers that underpin the property investment opportunity. Then we send the details of specific off-market, off-plan opportunities to those investors.

Working with some of the best property developers in the UK, and sourcing properties in locations which our comprehensive property research tells us are the best places to invest in property UK, investors are able to take advantage of off-market, off-plan property by registering for a property strategy consultation with an experienced Gladfish consultant. or contact us at +44 (0) 207 923 6100.

Live with passion

Brett Alegre-Wood

Topics: Property Investment Strategy Investment Strategy Professional Investors

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