Are you planning to invest in off the plan properties? This can be lucrative if you head on strategically. And before buying, make sure you ask these important questions first.
Nowadays, off the plan properties are becoming a trendy choice for investors. It has become easier to buy property off the plan as it allows the clients to reserve a property even before its built.
Not to mention, off plan is the most affordable option for many investors to enter the real estate industry. With only 10% deposit, you become the owner of that property, and you don’t have to pay anything until completion date that maybe a year or more away. With the added timeframe, you get more time to save a larger deposit in case you aren’t willing to pay Lender’s Mortgage Insurance.
So before investing in off the plan property, you must ask a few critical questions to make sure you’re heading on for the lucrative deal. As compared to buying an established property, the one bought off plan is a completely different experience. Whether you’re the owner or investor, you must understand the entire process as it’ll save you a lot of money in the long run. And here’re a few questions you should ask before investing. So let’s dive in;
How will the finished home compare with the display?
While buying off the plan, you must know exactly what you’re up to. A display would do great to convince you on what your property is going to look like. Unlike purchasing an existing house, you won’t exactly be able to see exactly what you’re investing in but a display in the form of 3D model would give you enough idea of your property.
With a display, you can determine the finishes and layout of the house. Besides, you’ll get enough idea about whether the place feel spacious or not? What’s the layout like? Are the bathrooms exactly where you want them to be?
How to secure the deposit?
Like normally, the deposit is paid to the developer’s solicitor and it holder in a separate client account. Depending on the contract & its Terms, the deposit might be releasable or perhaps held with a solicitor. In most cases, the first 10% of the deposit is protected by schemes. But in case there’s an exception, you must ask for that.
It’ll help to protect you if anything goes wrong. In case the deposit is more than 10%, your solicitor must check for the additional coverage of the deposit.
How can you get great tenants?
Honestly, you never know what type of tenant applications you come across. Perhaps that’s the reason why buy-to-let investments can be very much unpredictable. But what you can control here is; choosing the right person as your tenant. Apart from that, you must also get along with some research and due diligence.
Instead of messing yourself up with something you aren’t good at, let the experts look after that for you. Get your property managed professionally by Property Management Company and they’ll do the rest of the work for you like finding the best tenants and make your property management as effortless as possible.
What aspects of the property are customizable?
Since you’ve had enough idea of what the property is going to look like through display, now it’s the time to find out exactly what elements you can play with. Some off the plan properties can be customized to some extent but many just can’t.
So must ask the concerned person regarding where you stand exactly. Off plan houses offer a wide range of options when it comes to fixtures & fittings. So one of the best off plan properties tips for you here is to review inclusions & warranties in the agreement so you are aware that what custom changes you can make.
Do you want to learn more about the questions you must ask before investing in off the plan properties? Just check out the article now