New Build/Off Plan property: Good Investment?

Dear Readers

Over the past 7 years, new build and off plan flats have become popular property investment opportunities for property investors. On the face of it they are attractive investments as you are often buying early with a discount, and offering a brand new property to the bustling young professionals and corporate lets market in towns and cities up and down the country. Sounds like a sound investment doesn't it? But read on further.........

We have been doing some research through the summer and we have found that many large towns and cities are simply seeing an over supply of new build flats and a lack of demand from buyers. This means that these new build flats are struggling to sell and in many cases property investors are having to sell them at a loss just to get rid of them and this is a common scenario up and down the country.

The offplan/newbuild investment property market is a huge industry in the UK with many property investment clubs and property developers offering new build flats off-plan with seamingly good discounts and promises of good rental returns to hungry property investors eager to make a good profit.

However, many of these discounts that are often are not genuine as the prices have often been inflated to make the discounts look more generous so property investment clubs and developers can sell these properties quickly. And for the unfortunate property investor who buys one of these investments without doing thorough due dilligence, the losses can be significant.

Our advice is if property investors are going to invest in newbuild property make sure that you do your research and due dilligence carefully. get any potential investments independantly valued to make sure they are not over priced and the discounts are genuine and make sure there is genuine rental demand for the area you plan to buy the property.

Our final piece of advice for property investors is to always check property valuations and claims are genuine before buying and make sure that all the figures stack up. If the figures don't work or the discounts are not genuine, walk away......

Until next time, invest wisely.

Grant Delmege

Zone 4 Property

http://www.zone4property.co.uk