Lets talk about off-plan property investment

20th August 2021

By Callum Ward

The impressive performance of the UK property market has been extremely well documented throughout the pandemic and beyond as we start to see some form of economic and social normality finally return. This performance has resulted in an influx of first-time property investors who managed to save a substantial amount throughout the pandemic and are looking to capitalise on the flourishing market.

Property investment can no doubt be an overwhelming investment class to enter thanks to the sheer volume of data, information and industry jargon for someone to take in. In amongst this jargon is the phrase ‘off-plan property’ – a phrase that describes one of the most prosperous investment options when it comes to property. With this in mind, we have broken down everything you need to know about off-plan property.

What is off-plan property?

Off-plan property refers to the purchase of an apartment or house prior to its practical completion. In layman’s terms, it means buying a property either before or during its construction, and it comes with plenty of benefits!

Why should I invest in off-plan property?

Many investors prefer investing in off-plan properties as opposed to completed ones. One of the biggest benefits is the price. Off-plan properties are, on average, much cheaper to purchase than completed properties – offering an even more accessible investment for someone looking to take a step onto the property investment ladder.

The cheaper entry prices only enhance the potential capital gains that off-plan property offers, especially in the current market. Savills have forecast that over the 5 years to 2025, house prices are set to increase in the UK by a massive 21.5%. So, purchasing a property at a discounted price in 2021 could see your gains rise by an astronomical amount, especially if you invest in a buy-to-let hotspot. Areas such as the North West and Yorkshire and The Humber, to name a few, are set to see house price growth above that of the UK average, offering even more capital appreciation on your investment.

If cheaper entry prices and higher potential capital gains weren’t enough to convince you of the benefits of off-plan property, the rental income potential surely will be. Given the off-plan properties are brand new, they tend to be rented out at a premium thanks to the demand for modern luxury living across the country. With rents also expected to rise in the next 5 years by 17%, off-plan properties offer a head start when it comes to rental income.

The Knight Knox process

The benefits of investing in off-plan property are clear to see, but it’s still important to choose the correct agent to purchase through. Here at Knight Knox, we make investing in off-plan property simple. Our investment process can be broken down into 5 simple steps:

  1. Discuss your requirements with a property consultant
  2. Your consultant will assist you in finding the perfect investment opportunity
  3. Pay a reservation deposit of £5,000 to secure your apartment
  4. Notify your dedicated aftersales consultant of your chosen solicitor
  5. Exchange of contracts will be required within 21 days of reservation

For more information about our off-plan investment process and to see our current available properties take a look here and feel free to get in touch today!

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Lets talk about off-plan property investment

20 August 2021

The impressive performance of the UK property market has been extremely well documented throughout the pandemic and beyond as we start to see some form of economic and social normality finally return. This performance has resulted in an influx of first-time property investors who managed to save a substantial amount throughout the pandemic and are looking to capitalise on the flourishing market.

Property investment can no doubt be an overwhelming investment class to enter thanks to the sheer volume of data, information and industry jargon for someone to take in. In amongst this jargon is the phrase ‘off-plan property’ – a phrase that describes one of the most prosperous investment options when it comes to property. With this in mind, we have broken down everything you need to know about off-plan property.

What is off-plan property?

Off-plan property refers to the purchase of an apartment or house prior to its practical completion. In layman’s terms, it means buying a property either before or during its construction, and it comes with plenty of benefits!

Why should I invest in off-plan property?

Many investors prefer investing in off-plan properties as opposed to completed ones. One of the biggest benefits is the price. Off-plan properties are, on average, much cheaper to purchase than completed properties – offering an even more accessible investment for someone looking to take a step onto the property investment ladder.

The cheaper entry prices only enhance the potential capital gains that off-plan property offers, especially in the current market. Savills have forecast that over the 5 years to 2025, house prices are set to increase in the UK by a massive 21.5%. So, purchasing a property at a discounted price in 2021 could see your gains rise by an astronomical amount, especially if you invest in a buy-to-let hotspot. Areas such as the North West and Yorkshire and The Humber, to name a few, are set to see house price growth above that of the UK average, offering even more capital appreciation on your investment.

If cheaper entry prices and higher potential capital gains weren’t enough to convince you of the benefits of off-plan property, the rental income potential surely will be. Given the off-plan properties are brand new, they tend to be rented out at a premium thanks to the demand for modern luxury living across the country. With rents also expected to rise in the next 5 years by 17%, off-plan properties offer a head start when it comes to rental income.

The Knight Knox process

The benefits of investing in off-plan property are clear to see, but it’s still important to choose the correct agent to purchase through. Here at Knight Knox, we make investing in off-plan property simple. Our investment process can be broken down into 5 simple steps:

  1. Discuss your requirements with a property consultant
  2. Your consultant will assist you in finding the perfect investment opportunity
  3. Pay a reservation deposit of £5,000 to secure your apartment
  4. Notify your dedicated aftersales consultant of your chosen solicitor
  5. Exchange of contracts will be required within 21 days of reservation

For more information about our off-plan investment process and to see our current available properties take a look here and feel free to get in touch today!

Callum Ward

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