It has become a cliched saying that “those who fail to plan, plan to fail”. This phrase has been repeated so much so that a lot of times, its full import and the scope of its possible effects elude people.
It is good to prepare oneself for the possibility that things might turn for the better or worse. This preparation ensures that whatever the occurrence, you will be adequately prepared. One aspect where these preparations are most needed is as it concerns your finances and sources of income.
This is simply and primarily because, there is no guarantee of what tomorrow will bring. Preparation here will involve looking at your savings and investments and updating yourself on the best financial and other related practices that you could adopt.
The Off Plan Property Investment
This plan is generally about making investments based on the marketability of a piece of property, primarily land, before or during the time it is being built upon. Thus, in this situation, the potential investors don’t, at least in the traditional sense, get to see what they are to invest in. you can read more about it here.
This has become a thing because of the competitive nature of the property or real estate market. This is more so especially in the United Kingdom where there is an ever increasing demand for property but a shortage in its supply.
How Is this Smart Financially?
This is a smart move with great financial benefits not only for the potential investor, but also for the developer for the following reasons
- Here, one can get the property in question at a lower price than what it may cost upon its completion. This is the primary incentive why people go for it.
- It also reduces the risk borne by a developer who now has the assurance that the property about to or being worked on has been purchased as against the uncertainty of what may happen in the future.
- Again, a purchaser here actually has great chances of making good profit financially. This is because, in these dealings, there are various incentives given to the potential purchaser who upon the completion of the project, might decide to sell at a higher rate than it was initially bought for. This is referred to in financial terms as capital gains.
- Also, chances are that if the property is in a choice area or a developing choice area, the purchaser should be expectant of capital growth on the purchase.
What Does The Buying Process Involve?
The process involved in these sort of dealings is a bit different from the normal real estate transactions that most people are used to. However, this is not to say that the process involved is complex, on the contrary, it is not, it is just different. You just need to have an off plan property guide to help you navigate the process.
Here’s how you should go about it
- Do Some Research: This involves checking on the different trends and happenings around you on these issues. Get a professional’s advice on these trends and on your own personal interests and unique circumstances.Seek advice on how to go about it.
- Reservation Fee: This is a payment made so that property will be reserved for you. It is important you make this payment.
- Get a Lawyer: This is so that the lawyer will handle the legal aspects of the property purchase. It’ll be best if the lawyer is a specialist in real estate, property/conveyancing law.
- Mortgage the Property: The mortgage agreement to be reached is dependent on the particular circumstances of the purchase and it should be very suitable to you. Note that it might not always be necessary to mortgage the property.
- Ensure that the Necessary Paper Work is Done: This is when the contract is officially entered into. This also is when payment is made.
- Ensure A Snagging Survey Is Done: Snagging is a slang used within construction circles which basically means inspection. This inspection is necessary to ensure that there are no challenges with the property toward its completion date. You can find out more here: https://www.designingbuildings.co.uk/wiki/A_guide_to_investing_in_off-plan_property_in_the_UK.
- Get Ready for the Project’s Completion: The date for completion is usually stated in the agreement. This allows you make plans towards it.
Conclusion
Proper planning is how people are able to prepare for tomorrow. But this preparation also requires careful observation and proper information. This way, one will be able to make smart choices.
Investing in an off plan property is one such smart choice an individual can make.