What are the advantages of purchasing property “Off Plan”?

Reserving a property at Off Plan stage (typically you will have just the Architects floor & site plans, elevations and specification to base your decision on) has proven popular with a variety of investors and home-buyers for many years.

Buying property Off Plan offers a number of benefits. The major benefit and attraction for potential purchasers is the capital growth which can accumulate from the Off Plan stage through to physical completion of the property.

For example, you could reserve an Off Plan property and secure a price of £200,000. If the property takes 12 months from the time of Off Plan reservation to build completion and the property market increases in value by 10% per annum, the value of this property upon completion would increase to £240,000.

Another factor to consider in this time is that no mortgage will be required until completion, so no monthly payments to make through the build process. Purchasers can benefit from substantial gains in capital growth in a buoyant market by committing only a nominal reservation fee and exchange deposit. The introduction of exchange bonds further minimises capital outlay, where the buyer pays a bond premium which guarantees the developer a payout of the equivalent of the exchange deposit sum if the purchaser does not complete on the property.

Many property buyers will not feel comfortable to commit to buy a property which they can not physically see, inspect, etc. This provides a great benefit for astute buyers who can secure the most desired plots at Off Plan stage. For example, the plots which offer the best views (may not suffer from noise from nearby roads, trains, etc. compared to others on the same development which may). It goes without saying that the most desired plots in a development will be the ones to benefit from the greater gains in capital growth. Off Plan investors could also secure a prime plot which will maximise their rental return and minimise void periods.

Buying Off Plan can also provide investors with substantial profits on their initial capital outlay over a relatively short period. The source of profit in this instance coming from the capital growth through the build period. I refer you again to my previous example indicating the potential increase in property value in a buoyant property market. Particularly if an investor had the opportunity to reserve a prime plot Off Plan in a development, the capital growth would be maximised in comparison to less desired properties which in turn should maximise your chance of achieving a quick sale at the market value at that time. A similar principle can be applied to completed property, but mortgage payments would have to be paid from the outset. This could potentially eat into investor profit, particularly if the property was not let or there was a shortfall in rental income in comparison to mortgage payments and associated ongoing costs.

In conclusion, buying property Off Plan can provide many benefits for the astute investor and home buyer alike. This is particularly a popular option in a property market where values are rising and buyers are confident in the rise continuing until at least completion of their chosen property.

Most people who are looking to purchase Florida Real Estate migrate toward condominiums, either in the form of beach property or luxury condominiums with an ocean view. There are so many great choices available in the form of Florida real estate, that it is necessary to review hundreds of different options before you make your final decision. To many tourists and real estate buyers all over the world, Florida is a top choice for purchasing real estate. Is the beach your priority? Then your first stop should be the Miami-Dade County, because there are some beautiful locations there, including Surfside, Miami Beach and Sunny Isles. You may also consider Pembroke Pines, Miramar, Ford Lauderdale or Coral Springs as well. If the beach is not your main focus, then you may consider the Central Florida area, which is where you will find the incredible Kissimmee and Orlando, both of which are well known for a variety of tourist attractions, including Epcott Center, Walt Disney World and Universal Studios.

The downtown Orlando area has been transformed, featuring the historical Thornton Park district mixed in with new malls in east Orlando, and a variety of parks and attractions in between. There are dozens of different choices for condominiums in the Orlando area, with each district of Orlando offering a different variety. The Oviedo area is located around 15 minutes north of Orlando and offers a fast-pace atmosphere, with many large names in high-tech companies and industries. The Seminole Towne Center has become the center for a large amount of growth in the western part of this city.

Close to the Orlando International Airport but south of Orlando itself you will find Conway, a city that is known for the beautiful tree-lined streets that circle several gorgeous lakes. Real estate investors in Florida tend to part particular attention to the stunning homes in Conway. Windermere presents a charging downtown area around eleven miles southwest of the city of Orlando. In Windermere you will find stunning mansions and estates with incredible lakefront communities scattered throughout the city.

Another worthwhile place to visit when searching for real estate is Winter Garden and Ocoee, which you will find around fifteen miles west of Orlando. These cities are pressed up against important freeways including the Turnpike, making them easily accessible. These two citrus communities still have their small-town charm despite having grown gradually throughout the years.

Everyone who is interested in settling down, or purchasing a stunning home in an exotic location can benefit from the real estate market in Florida. No matter where you want to live or what features you require, Florida has something to offer in the way of stunning condominiums and homes for completely affordable prices.