What to Look Out For When Buying Off Plan

Buying Off Plan

It can be difficult to decide when every deal seems to be not to be missed!

There are some key things I look for when buying off plan, whether it's in the UK or abroad it makes no difference.

The property must be good value now ie it compares favourably with similar properties today, and is not based on properties going up in value 10% each of next 2-3 years.

Supply and demand ? this is vital. What is current supply and demand? What will it be when complete? If market is already looking saturated now, will it be any different in 2 years? What development is planned in area in the meantime?

Market forces ? will demand grow? Decline? Who is the market? Young professionals, holiday makers?

Interest rates ? what are current interest rates? Are they likely to go up/down?

Tax efficient/costs ? Tax can often be your biggest expense. What are property taxes like in the country looking to invest in? What is most tax efficient way to buy ie joint names, limited company? What are other taxes like? Eg Capital gains tax, wealth tax, inheritance tax, income tax.

Location ? obvious?! One development may be 20% cheaper than another, why is that? Which will go up in value by more? What attractions/amenities are there now/will be there on completion?

Payments ? what is payment structure? Is this best way to leverage your money?

Independent lawyer ? would always get an independent lawyer from the developer. Once have a good lawyer can trust, stick with them!

Does price cover everything? - eg air conditioning, swimming pool, car parking?

What is economic situation in country? What is likely to be over next 18 months-2 years? Is it stable?

What is size of development?

What is the build quality like?

What is the size of developer? Are they likely to go bust? If they go bust is your money secure? How long have they been around for?

Will the developer keep in contact during build period? Will they help with your strategy/exit strategy?

Exchange rates? If have bought in a foreign currency, what is likelihood of changes in exchange rates? Can you minimise the risk?

And once have asked all these questions should help form an answer!!

As with any property purchase, you should be pleased with the value when you buy, and also have an idea of the way the market is going over the build time ? you do not want to have a BTS strategy and get to completion date to find out no-one wants to buy your property at the price you hoped for, as supply outweighs demand, or get hit with higher tax bill than expected. Or go in with a BTL strategy and then find out yields are much lower than you need to cover costs. This may seem obvious, but many people make these mistakes.

Alan Forsyth is a full time property investor and developer with 10 years experience in UK and overseas. He is managing director of http://www.property-investment-tips.com which offers free independent advice and tips on property investment, courses, countries, strategies, mortgages and much more - with a free newsletter every 3 weeks giving latest tips and offers to over 500 investors. Sign up today at the site for free independent advice!

---

Home Buying: Things To Keep In Mind

So you've decided you want to own a home and... Read More

Getting Started in Real Estate Foreclosure Investing

Decide to Invest in Real Estate Foreclosure InvestingWith the increase... Read More

Selling Your House Fast!

The physical senses of buyers respond to a home's design,... Read More

Buying Property in Bulgaria : How to Avoid Making A Bad Investment

Where is it possible to buy a property on your... Read More

Real Estate Investing In Bulgaria

As Bulgaria readies for joining the European Economic Community in... Read More

Buying A Home ? Rain, Sun, and Weather Issues

When buying a home, it can be easy to overlook... Read More

How Professional Property Investors Interpret and Use Capital Growth Statistics

Understanding and using yearly price growth statistics in an area... Read More

Home Warranties: Are They Too Good To Be True?

What is a 'Home Warranty?'A home warranty is like an... Read More

Budgeting Your Log Home: Where Do You Start?

The Log home industry has matured these last many years,... Read More

Cheap Homes For Sale In Great Towns

Good Homes Under $50,000? My wife Ana and... Read More

Home Inspection Checklist - Home Inspectors

Although architectural details, wall and floor coverings, modern conveniences and... Read More

Much Ado About Mansionization?

Is there a perpetual shadow hovering over your house? Do... Read More

Sell Your Home Without Paying Any Commissions

All of us know that real estate commissions can work... Read More

Salt Lake City Real Estate

From the mountains to the valley, there are many types... Read More

Not Everyone is Buying or Selling, Some are Doing Both

As if one real estate transaction is not hectic enough?... Read More

Guide To Finding The Perfect Central Illinois House

Central Illinois is an area rich in cultural activities and... Read More

Making it affordable: Nine tips for first time home buyers

It seems that everyone loves a good real estate story.... Read More

Las Vegas Real Estate - Luxury Properties

Las Vegas is known for it's over the top hotels... Read More

Back To The Future - Big Changes Are Coming, Get Ready Now

The comments below are quoted from a recent speech by... Read More

Mortgage Broker Training: How to Secure Loyalty From Realtors

So you've just returned to your office after delivering an... Read More

Quality of Life in Sussex County Delaware. Facts, Statistics, Observations and even opinions!

We Sussex Countians are fortunate in many ways as we... Read More

How To Build A Million Pound Property Portfolio

Looking to quickly build a million pound property portfolio? You... Read More

Legal Information About the Real Estate Contract

The conclusion of final agreement between a seller and a... Read More

10 Tips for Investing in Distressed or Foreclosed Properties

1. Search on the world wide web for distressed or... Read More

The Most Sensible Investment Decision Youll Ever Make

So much advice is bandied about on the internet and... Read More

Types Of Real Estate - An Investors Choice

There are different types of real estate, and different ways... Read More

Selling Your Home ? What Can Go Wrong With Pricing and Loans

So, you're selling your home (house, townhouse, condo, apartment, land,... Read More

Protective Covenants ? Buying A Home

In addition to zoning, some properties have covenants recorded at... Read More

What Is a CMA

"CMA" is an abbreviation real estate agents use for a... Read More

The Professional Investors Plan

The art of using high-leveraged activities.Here I would like to... Read More

Landlords Dance The FICO Fandango

Fair Isaac Corporation is the creator of the FICO credit... Read More

Working With Your Real Estate Attorney

Purchasing or selling a home will probably be one of... Read More

How to Prepare Yourself for Owning a Dual Purpose Second Home

If you are thinking about buying a second home, you... Read More