RealEstate-Articles

What to look out for when buying Off Plan

Read about "What to look out for when buying Off Plan" on realestate-articles.net. This article, "What to look out for when buying Off Plan", will help you with your questions or concerns. We realestate-articles.net, have a large number of updated articles. Please feel free in searching for more information on realestate-articles.net. If you have any questions, please contact us.

Buying Off Plan

There are some key things I look for when buying off plan, whether it's in the UK or abroad it makes no difference. Here's 10 things to check...before committing...

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

Supply and demand/market forces - this is vital. What is current buying/renting 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 the area in the meantime?

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, location, 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? Ie some developers will require payment all the way through the build period, some will only need a 20-30% deposit, and that will be it until completion - big differences to your cashflow.

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

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

What is the size of developer/development? Are they likely to go bust? If they go bust is your money secure? How long have they been around for? How big is the development - I prefer smaller developments where less likely to have great deal of investors all with same strategies.

Exchange rates? If have bought in a foreign currency, what is likelihood of changes in exchange rates? Can you minimise the risk? This can make a big difference to what you pay if are staged payments in foreign currency.

Who are the other buyers? All investors, or second home owners? I prefer to buy in a development with some owner occupiers, and with a local market rather than only foreign investors - as when come to sell will be a local market to sell to.

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 rental yields are much lower than you need to cover costs. This may seem obvious, but many people make these mistakes.


Car Buying Scams. - Excellent Conversion 50% payout sign up at: http:www.carbuyingscams.com/affiliate.html and get an email notice for every sale!
Rv Publications.com. - Quality online assistance for buying a new or used Rv, purchase publications to help you along your buying adventure.

Alan Forsyth is a full time property investor in the UK and overseas. He also runs the property websites at www.property-investment-tips.com and www.property-investment-deals.com and writes regularly for several property magazines and websites. Sign up at the websites for free independent tips on countries, strategies, finance, tax and deals. He sends regular free newsletters that go out to over 2000 property investors.

Article Index: | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 | 15 | 16 | 17 | 18 | 19 | 20 | 21 | 22 | 23 | 24 | 25 | 26 | 27 | 28 | 29 | 30 | 31 | 32 | 33 | 34 | 35 | 36 | 37 | 38 | 39 | 40 | 41 | 42 | 43 | 44 | 45 | 46 | 47 | 48 | 49 | 50 | 51 | 52 | 53 | 54 | 55 | 56 | 57 | 58 | 59 | 60 | 61 | 62 | 63 | 64 | 65 | 66 | 67 | 68 | 69 | 70 | 71 | 72 | 73

- Hotel Copenhagen - Albergo Istanbul Offerta Speciali - Golden Age Hotel - Alp Pasa Hotel Antalya - Auto Headlights