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buying off plan - an investment yes or no?
anthonymartin
Posts: 15 Forumite
I have the opportunity to buy off plan on a 60 home development. Site is expected to be finished 12 and 18 months time. I am looking at sale and leaseback option. Will receive 6% from developer for duration of site development. The income at 22750k net is attractive but this will drop to market rent of 12k when developer leaves the site. Hoping to see capital growth of 15 - 20k and sell when the devloper finishes the site.
Have spoken to local estate agents whose opinions diifer
Opinion 1. Developer will have 20% new build premuim so very diificult to achive capital growth and profit.
Opinion 2. If you buy sales home yes morel likely to be able to sell at a premium?
Is anyone a buying a single unit off plan? what other factors should i take into account?
Have spoken to local estate agents whose opinions diifer
Opinion 1. Developer will have 20% new build premuim so very diificult to achive capital growth and profit.
Opinion 2. If you buy sales home yes morel likely to be able to sell at a premium?
Is anyone a buying a single unit off plan? what other factors should i take into account?
0
Comments
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I would also take into account what other new builds are going on. Just as an aside in my area buying off plan in order to try & make a profit would be ridiculous as there is far too much on the market and no ones buying.:beer: Well aint funny how its the little things in life that mean the most? Not where you live, the car you drive or the price tag on your clothes.
Theres no dollar sign on piece of mind
This Ive come to know...
So if you agree have a drink with me, raise your glasses for a toast :beer:0 -
I agree with Lynzpower, it can be difficult to sell a second hand new build if there are other brand new new builds in the area, even on a different development. I can't tell you how many four bed executive detached houses there are for sale in my nearest town; if you wanted one of those new or nearly new, you'd be spoilt for choice!
Check what's planned and research the true selling price of similar properties that aren't brand new. Personally, I'd steer well clear of new build.
Everything that is supposed to be in heaven is already here on earth.
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aye with the above. Also there's 60 homes, it's not like it's a small 'exclusive' development.0
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