Is Buying Off-The-Plan Property a Good Investment?

1 year ago
2 minutes

‘Off-the-plan’ property means buying a property that is still under construction. Despite it being an ongoing development, an off-the-plan property could potentially be a profitable and reliable investment.

Before we talk about why an off-the-plan property is a good investment, it’s important to know the benefits and risks of buying property off-the-plan. 

Reasons to invest in an off-the-plan property

A building under construction. Image source. 

Lower purchase prices

Investors who are looking to get into the property market are often attracted by the lower purchase prices of off-the-plan properties. Off-the-plan properties can be an excellent investment since they allow you to purchase a property at a much lower purchase price than when it is completed. 

Potential of attaining strong capital growth

When buying an off-the-plan property, buyers benefit from the low purchase price. Whilst capital growth is not always guaranteed, it is likely the price of the property will continue to grow throughout the year. And since you can secure better value for money than if you purchase a similar property once it is already completed, investors can attain instant equity for their property as soon as it is completed. 

Good rental yield

Many off-the-plan properties are designed as ‘build-to-rent’. And since they provide appealing amenities and facilities in a well-located area, owning an off-the-plan property is a smart way to secure a quality property in areas with high demand for rental properties. This means that investing in an off-the-plan property can add value and receive strong rental yield. 

Flexible payment plans 

Off-the-plan properties allow you to stagger your payments to ensure you maintain your liquidity throughout the construction period. In an off-the-plan property, you can make small deposits during the construction period and settle the rest of the money when the project is ready to be moved into instead of paying a great sum upfront.

So, does it pays to invest in an off-the-plan property?

A construction site in Melbourne CBD surrounded by residential apartments and office buildings. Image source. 

As the property market continues to grow, buying off-the-plan property is an increasingly popular investment strategy. It is worthwhile to consider not just whether it can be a good investment, but also how much you might be able to save when compared with buying an established property.

Many investors are showing their interest in buying an off-the-plan property as it offers them a good value for money and allows them to secure luxury in a prime location before the property rises in price.

Read more about off-the-plan property market trends here.

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