buying at planning stage

_s79

This may sound quite obvious, but I have no idea.

I am a first time buyer, I am keen to buy a property (an apartment) and relocate to the city. I am in no rush to buy; say within the next 18months, and so I am interested in saving by buying a property that is not yet built.

Whats the term for such a thing, is it 'stage 1' ?

Also, where can I find out more about such property’s as although I have only had a superficial look, there doesnt seem to be much information on the net?

Would I have to travel down and visit a few estate agencies?

And finally, any advice?

cheers

Jimbo333_2

Hi,

I'm no expert, but seeing as you've had no replies so far...

You say "relocate to the city", do you mean THE City, as in London's financial quarter, or a city near to you? If the former, you might be targetting too small an area for starters, and a very difficult one for a FTB.

I almost bought "off plan" a couple of years ago, and wish I had. You set the price when you pay the deposit, and then sit back, watching the (theoretical) price of the apartment go up, while you do nothing (mortgage payments only start when the build is complete).

To find one in the first place, try ringing/websearching ALL the developers you can think of. Also visit the area to see what's in progress (not too late until all plots sold) and ask friends/family in that area to scan local papers, keep an eye out - a local should know what's being built around them, we're nosy by nature.

At the same time, get an "agreement in principle" (mortgage) and save your cash - you might need 10%, maybe more, to reserve a property (regardless of what your mortgage deal is).

The reason I missed out on my "off plan"? I got to the sales office 10 minutes before the advertised time that the flats would begin to be sold 9early I though!!). Alas, over 100 people got there first, and about a dozen had been queuing for FOUR DAYS!!!!:eek:

Good luck

Hope this helps

_s79

cheers for the reply. Its not London that I am looking at. I think I will take a drive next weeekend and ask a few people, thanks for the advice.

mountainofdebt

Don't know if it is called 'stage 1' - seem to have heard the term 'pre-build' some where...so I don't know if this is the normal term used in this situation.

I know some people who have done what you are proposing doing.....by doing this they get the pick of the properties, and depending on house prices, at a bargain price.

Of course one advantage of doing this is that you could always sell the property at a profit without never having moved in, especially if prices increase in the meantime. However there is always the possibility that prices fall and you end up paying over the odds for it.