The gap between supply and demand defines the housing market. With homes in the busiest markets being snapped up as soon as they become available, purchasing off-plan – before construction has completed – has become increasingly popular with both owner-occupiers and buy-to-let investors looking to beat the crowds and secure their perfect property.
What’s more, in the current market it is almost certain that your property will have gone up in value over the construction process, providing instant capital appreciation.
In our new off-plan property guide, we have provided all the information you need to make an informed decision about your next purchase.
Highlights of the guide include:
What is off-plan property?
Purchasing a property off-plan is different from buying a completed property which you can often buy at a below-market rate which means you are likely to earn significant capital appreciation upon completion.
Other advantages of buying a property off-plan direct from the developer include having the best choice of available apartments, the ability to customise your property and reduced maintenance costs.
Questions to ask before buying property off-plan
As with any property purchase, buying off-plan is a significant undertaking and you should make sure you have done your research before reserving. There is a lot to consider, and we have compiled answers to some of the most common questions on your behalf.
Is the developer reliable? How long is the construction process? What costs do I need to be aware of beyond the purchase price? Can I get a mortgage on an off-plan property? Can I buy an off-plan property for investment purposes?
How does an off-plan property purchase work?
Whilst most housebuilders will require you to pay a deposit and then the balance on completion, some developers offer staged payment options when purchasing a property off-plan. This format offers more flexibility and the ability to negotiate a schedule that suits you.
Where are the best places to buy off-plan property?
The UK property market is booming – but house prices are not growing at the same speed everywhere. For years, London was the best market for off-plan property, but now it is clear that the future lies in regional cities like Manchester and Birmingham.
Our new off-plan property guide includes a breakdown of these markets, and shows why Manchester and Birmingham are the best places to buy off-plan property right now.
How much Stamp Duty do I have to pay when buying off-plan?
Yes, there is no difference to your Stamp Duty liability when a property is bought off-plan. You still have to pay the required amount based on the overall value of the property. You must do so within 30 days of exchange as with any other residential property purchase, assuming it is worth more than the minimum threshold of £125,000.
Our off-plan property guide includes the full break down of Stamp Duty costs, showing how much you will have to pay on your property.
Where can I find out more?
The above information is a good start, but if you are looking to find out more about buying a property off-plan, you can download our comprehensive guide today by clicking here.