Things To Consider While Investing In Off-Plan Properties
If you are in investment business, then one of the most profits making segment is real estate and you must be aware of that. But have you ever thought of investing in off-plan properties that is the properties which are still on pen and paper and yet to be materialised? If yes, then you must be thinking of hiring one off plan property investment consultancy to guide you invest safely and to reap profits. When the markets are flourishing, you can reap much profit and since real estate values hardly dip, you can expect to generate some sort of income out of it. But what is the difference between investing in completed properties and off-plan properties? The answer to this question is simple and that is more risk but much more rewards if you get the best consultants.
When you have appointed or hired an off plan property investment consultancy to help you in investing in off plan properties, then you need to must seek their expert guidance on the following things:
- Location: Whether it is a readymade property or yet to be built the location is the base of the valuation of any real estate projects. Moreover, when you are considering the off plan properties, then you need to gauge the advantages of the location in much more details. The future valuation of the property depends on the growth and development of the location. The transportation factors and convenience plays a major role in determining the value of the properties. So, when you are about to invest in properties which are yet to be built, consider the benefits, advantages, disadvantages of the location of the property and according fix the price for investment.
- Research: Your consultant must be very keen on researching about the details of the property and its surrounding features. The price you are going to pay for buying the units of the property must be very well estimated and calculated on the basis of the future value of the property. The future value depends on various factors and your off-plan property investment consultancy must guide you about all the factors, so that both of you together can gauge the profit margin that you are going to generate when the property is built.
- Market: Understanding the market for the properties is very important. The market is not only restricted to a certain place in this case and it is an open one. You need to understand the sellers and the buyers of the properties as you are investing in the pre-built building to sell it off when it is built. You need to know where you can get the best price and the rates for your building in the future. Moreover, you need to also analyse the competitors of yours and their moves.
- Property: Finally the features and the amenities of the property will only make it saleable and that is why before investing, you need to know about the detail master plan of the real estate project along with other details.
It is analysed from various financial data and other resources that investment in off-plan properties reaped almost 10-20% profit just by depositing even 10% of the actual property value.