Off-plan property investment can be a highly attractive option for buyers looking for lucrative opportunities in the UK housing market.
Committing to a purchase while construction work is ongoing – or possibly before it’s even begun – usually means you can secure a discount, which increases the potential to achieve long-term capital growth and returns on your investment.
However, it’s important to acknowledge that – like any investment – off-plan property comes with certain risks, one of which is that you’re buying an asset that doesn’t physically exist yet.
Fortunately, there are measures you can put in place minimise risk. One of the wisest steps you can take before committing to the investment is ensuring that project managers, quantity surveyors and architects are able to keep you up to date with how the development is progressing.
For additional peace of mind, you could choose to use an independent project monitoring service to oversee things like cost management and invoice payment tracking.
It’s also worth asking what contingency plans are in place to manage overruns or delays in construction, possibly caused by unavoidable or uncontrollable factors like bad weather.
Reputable, experienced developers will have procedures in place to report back to their clients throughout the build. By getting regular reports from their contractors, development firms can gain visibility over the entire project and take actions – such as adjusting manpower resources – to avoid overruns and other problems.
This is why one of the best things any investor can do to keep track of an off-plan project is to use an established developer with a strong track record of delivering properties on time and on budget.