Off plan property

[mungoboyd]

Afternoon,

What's the general feeling about offplan property - I've been looking into it but seem to get some fantastic sales pitches on one hand and some horror stories on the other. Have invested in property before, but am put off the non-refund deposit, uncertainty etc...

Looking for Q1 next year - any topline thoughts on best way forward?

Cheers, M

[bonetti consultants]

Sometimes great deals can be had at the early stages of a development. Developers like advertising 50% sold enticing others to purchase. Negotiate hard and ask them to include all extras as part of the deal, if they turn down your offer walk away and leave it on the table, if you are considering selling it immediately after completion, touch base with local estate agents asking them to let you know if they have a buyer for that property. The deposit and target exchange date are deterrents for time wasters, talk to the sales team on site explain that you are happy to proceed and will instruct solicitors but not leave a deposit.

Remember every day that the properties are not sold the developer is paying interest.

Regards,

Bonetti Property Development Consultants . co .uk

[Mansel]

Hi, I have only just joined and have a property portfolio myself. I have just started to invest in off plan developments and I think that there are some great deals out there but you have to do a lot of checking first. I have bought an aprtment in Swansea in a small development. The prices seem good to me compared to others that are being sold in the area. If you would like some details I will gladly try to help you.

[offplan1]

Now is an excellent time to buy. There are some super deals around.

The key is - don't be afraid to ask for the deal you want.

If the deal you want isn't available today - wait.

Good luck and good hunting.

Off Plan Property Exchange . com

[billmccallum]

The idea of off-plan appeals, but I am thinking of getting into new build development as an alternative, possibly with sites of 10 to 15 properties.

The idea of building a portfolio seems right, but with strong markets it can be difficult to buy at the right price.

Buying a site with planning permission in place can cost around £500K to £750K, with build cost of £50K per unit, a site of 10 units can be valued at £1.5million to £2.5 million (depending on location), so a £1million investment can generate 50%+ profit, whereas portfolio building in the traditional form can only expect 8%+ growth (if the market is sustainable).

Anyone else interested? I have about £70K and looking for others to bet a consortium together.

[Richard Webster]

Typically the scanario is something like this:

A builder has some flats (sorry they are not flats any more - but "apartments") that they are offering for £200,000. They offer a 15% discount for a quick sale but the original price stays on the documents and SDLT of £2,000 is paid. Land Registry shows price of £200K is anyone looks.

Trouble is that 6 month old flats in same block won't let and others are trying to sell and not getting anything like even £185,000. There are some 10 year old flats down the road with similar accommodation going for £150,000.

Why buy the new flat?

As a conveyancing solicitor I believe the information given in the post to be useful but I accept no liability except to fee-paying clients

[irvendriscol]

Originally Posted by offplan1

Now is an excellent time to buy. There are some super deals around.

The key is - don't be afraid to ask for the deal you want.

If the deal you want isn't available today - wait.

Good luck and good hunting.

Off Plan Property Exchange . com

THANKS FOR YOUR INFORMATION.

[ukreal]

thanks for the information.