Your Guide to Off Plan Investment Property

Buying investment property off-plan can be the direct route to a ready-to-let portfolio of pristine properties in high-growth areas, all with built-in equity and a few years of maintenance-free property ownership - all for a minimum entry cost. But if it were that easy, everyone would be doing it - right? Read on to find out how off-plan investment REALLY works...

GET READY!
Anyone considering off-plan investment needs to start with the basics - a calculator and a pad of paper!

So how much money have you got to invest..?

How much capital do you have, and how much do you want to invest in the property market? Remember to consider any funds which you may have in underperforming shares or ISAs which could be transferred to increase your total. If you're considering releasing equity from your residential home, be aware that it's likely to take you a minimum of 6 weeks to receive the money.

...and how much want to make?

Are you investing as a way of generating future income, or to grow your capital for a rainy-day? If the returns from your planned property portfolio feature in your life-plan, calculate just how much money you're going to need, and when you're going to need it. Map this sum backwards to find out just how big a portfolio you should be aiming for.

If the numbers surprise you, take a moment to reflect on the other investment options you could consider, or how willing you are to compromise your goal.

Remember, the one absolutely guaranteed way to see no return on your investment at all - is not to invest in the first place.

GET SET!
If you've concluded that off-plan property is the best route to your financial goals, you're going to need everyone on-board for that all-important first investment.

So who's in your team already...?

No matter how enthused you are that off-plan property is the most savvy way for you to reach your investment goals, it'll all come to nothing if your partner has completely different plans for your money. Sit down together to agree your financial goals and how you're going to get there.

... and who do you need to sign-up?

Buying property off-plan isn't a job for the lone-ranger - at the very least you're going to need to work with a developer, a solicitor and a mortgage broker - and in all liklihood you'll also need the services of a rental agent, snagging inspector, carpet-fitter, accountant - the list can go on!.

Whether you decideGET READY! to appoint these professionals directly or work with the team recommended by an investment property specialist all depends on how confident you are that your personal network can provide all the people you're going to need - and how much time you have to co-ordinate their work.

GO!
Once you're ready to buy and everyone's on-board, all you need is a property to buy!

So where are you going to start looking...?

There are well over a thousand towns in the UK, and each and every one of them has at least a few new-build sites at any point in time. One thing to be certain about is that getting in your car and spending a Saturday afternoon quizzing the junior sales staff in the showhomes near you will NOT get you either the best deals or the best sites available. Off-plan investment research is all about analysis of the current and future economic conditions across the diverse regions of the UK - whether you do this yourself or work with a selected investment property specialist is up to you.

...and how are you going to make your choice?

Having pinpointed your region, and your site, it's time to select your 'unit (as those in the know call them!). Take time to think about your rental market - if you're going for urban professionals then balconies and en-suite bathrooms will be a hit - whereas if the tenants in your area are young families, then plots with gardens could be just the thing. One thing to absolutely avoid, though, is using your own personal taste as a guideline for your choice. A 'good enough' property purchased this month in the latest hot-spot will be a much better investment than a just-perfect property bought in a mediocre location next year. You have been warned!