Off Plan Property in London
Off plan property investment is a convenient way to get a leveraged exposure to London property market and fix a purchase price before completion of construction.
Off Plan Property: Advantages
- Off plan property is secured by paying 10-20% deposit before completion of construction, i.e. investors benefit from property price growth with a financial leverage: 10% property price growth on a property reserved for 10% of its price returns 100% on invested capital
- Off plan contract can be sold before completion of construction, i.e. within 1-3 years, or it can be completed. We can assist with mortgage, lettings and management
- If an off plan property is sold before completion of construction, an investor would save on stamp duty (1-7%, depending on property value) which is paid only for completed properties
- When buying an off plan property, an investor benefits from a structural guarantee issued by the National House-Building Council or a similar organisation
- Off plan property can be aquired remotely, there is no need to get a mortgage, no need to manage a property and let it out
- A new built property is easier to maintain, manage, rent out, or sell
- An investor can choose the best units, views, finishing, etc
Off Plan Property: Risks
- There is no guarantee that property prices would increase before completion. This risk exists when buying any property or any asset. London Property reduces this risk by recommending properties in high growth areas and segments which are expected to outperform the market
- We source off plan property with long (2-4 years) completion dates to give investors more time to benefit from price appreciation and sufficient time to re-sell
- A developer may become bankrupt or do not complete a construction in time. London Property strives to work with reputable developers with a proven track record and a deposit guarantee
Off Plan Property: Our Services
London Property helps investors to maximize return on London property investment by
- sourcing off plan property in locations expected to outperform general market
- researching and identifying projects and units with attractive price / quality points
- negotiating prices
- finding projects with attractive payment terms (10-30% of purchase price before completion of construction) and long time (2-4 years) to completion to benefit from financial leverage with small capital outlay longer
- security of a deposit
We do extensive research using publications of leading consultancies and development plans of local authorities to recommend areas for property investment. In selected areas, we recommend options taking into account location, quality, price, payment and legal terms.
Because of established relationship with developers, London Property frequently receives information on property launches before public launch. This privileged access is beneficial for pre-registered investors as the best units may be sold out before public launch or during the first release.
It is hard for an investor to find attractive opportunities, because it requires understanding of market segments, development plans of authorities, city areas, access to attractive projects, understanding of legal and financial deal structures, relationship with developers, and allocating significant time and effort for due diligence. London Property is well suited to help you build profitable property portfolio.