Off-plan property - Revision history

Designing Buildings at 08:10, 19 November 2020

2020-11-19T08:10:30Z

← Older revision		Revision as of 08:10, 19 November 2020
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	* What is a mortgage?		* What is a mortgage?

−	[[Category:Contracts_/_payment]] [[Category:Property_development]] [[Category:Public_procedures]]	+	[[Category:DCN_Definition]] [[Category:DCN_Guidance]] [[Category:Contracts_/_payment]] [[Category:Property_development]] [[Category:Public_procedures]]

Designing Buildings at 09:43, 4 August 2020

2020-08-04T09:43:41Z

← Older revision		Revision as of 09:43, 4 August 2020
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	Off-plan property had come under criticism as a result of a number of developments that have been marketed and sold abroad before they are completed, and without being offered to the local market. This has left a number of developments in London that are sold, but have very low levels of occupancy, having been bought as a 'safe haven' investment, rather than to provide accommodation.		Off-plan property had come under criticism as a result of a number of developments that have been marketed and sold abroad before they are completed, and without being offered to the local market. This has left a number of developments in London that are sold, but have very low levels of occupancy, having been bought as a 'safe haven' investment, rather than to provide accommodation.

−	~~= Find out more =~~	+	= Related articles on Designing Buildings Wiki =
−		+
−	=== Related articles on Designing Buildings Wiki ===	+

	* A guide to investing in off-plan property in the UK.		* A guide to investing in off-plan property in the UK.
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	* Shared ownership.		* Shared ownership.
	* Speculative construction.		* Speculative construction.
		+	* Types of development.
	* What is a mortgage?		* What is a mortgage?

	[[Category:Contracts_/_payment]] [[Category:Property_development]] [[Category:Public_procedures]]		[[Category:Contracts_/_payment]] [[Category:Property_development]] [[Category:Public_procedures]]

79.67.174.182: Undo revision 143254 by [[Special:Contributions/[IP address hidden]|[IP address hidden]]] ([[User talk:[IP address hidden]|talk]])

2019-09-11T18:40:59Z

Undo revision 143254 by [[Special:Contributions/[IP address hidden]|[IP address hidden]]] ([[User talk:[IP address hidden]|talk]])

← Older revision		Revision as of 18:40, 11 September 2019
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	The term ‘off-plan property’ refers to property which is available for purchase before it has been constructed. This is where the phrase ‘buying off-plan’ comes from; typically (but not always) relating to apartments.		The term ‘off-plan property’ refers to property which is available for purchase before it has been constructed. This is where the phrase ‘buying off-plan’ comes from; typically (but not always) relating to apartments.

−	~~[https://sevencapital.com/guides/off-plan-property/~~ Off-plan property] is sometimes marketed to property speculators who purchase it with the aim of making capital gains by taking advantage of any discounts and selling into a rising market. In a rapidly-rising market, a buyer may even be able to sell the contract on, meaning they have the potential to earn a profit on the property before it is completed.	+	Off-plan property is sometimes marketed to property speculators who purchase it with the aim of making capital gains by taking advantage of any discounts and selling into a rising market. In a rapidly-rising market, a buyer may even be able to sell the contract on, meaning they have the potential to earn a profit on the property before it is completed.

	Off-plan property may also be desirable where an area is in high demand, and purchasers want to secure a future property.		Off-plan property may also be desirable where an area is in high demand, and purchasers want to secure a future property.
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	* What is a mortgage?		* What is a mortgage?

−	~~[[Category:Organisations]]~~ [[Category:Contracts_/_payment]] [[Category:Property_development]] [[Category:Public_procedures]]	+	[[Category:Contracts_/_payment]] [[Category:Property_development]] [[Category:Public_procedures]]

213.106.162.210 at 15:55, 11 September 2019

2019-09-11T15:55:41Z

← Older revision		Revision as of 15:55, 11 September 2019
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	The term ‘off-plan property’ refers to property which is available for purchase before it has been constructed. This is where the phrase ‘buying off-plan’ comes from; typically (but not always) relating to apartments.		The term ‘off-plan property’ refers to property which is available for purchase before it has been constructed. This is where the phrase ‘buying off-plan’ comes from; typically (but not always) relating to apartments.

−	Off-plan property is sometimes marketed to property speculators who purchase it with the aim of making capital gains by taking advantage of any discounts and selling into a rising market. In a rapidly-rising market, a buyer may even be able to sell the contract on, meaning they have the potential to earn a profit on the property before it is completed.	+	[https://sevencapital.com/guides/off-plan-property/ Off-plan property] is sometimes marketed to property speculators who purchase it with the aim of making capital gains by taking advantage of any discounts and selling into a rising market. In a rapidly-rising market, a buyer may even be able to sell the contract on, meaning they have the potential to earn a profit on the property before it is completed.

	Off-plan property may also be desirable where an area is in high demand, and purchasers want to secure a future property.		Off-plan property may also be desirable where an area is in high demand, and purchasers want to secure a future property.
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	* What is a mortgage?		* What is a mortgage?

−	[[Category:Contracts_/_payment]] [[Category:Property_development]] [[Category:Public_procedures]]	+	[[Category:Organisations]] [[Category:Contracts_/_payment]] [[Category:Property_development]] [[Category:Public_procedures]]

Editor at 15:39, 8 August 2018

2018-08-08T15:39:12Z

← Older revision		Revision as of 15:39, 8 August 2018
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	=== Related articles on Designing Buildings Wiki ===		=== Related articles on Designing Buildings Wiki ===

		+	* A guide to investing in off-plan property in the UK.
	* Buyer-funded development.		* Buyer-funded development.
	* Developer.		* Developer.

Designing Buildings at 07:50, 12 April 2018

2018-04-12T07:50:46Z

← Older revision		Revision as of 07:50, 12 April 2018
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	Off-plan property may also be desirable where an area is in high demand, and purchasers want to secure a future property.		Off-plan property may also be desirable where an area is in high demand, and purchasers want to secure a future property.

−	Typically, a deposit of just 10-20% of the property’s value is required to secure an off-plan property. If ~~they~~ go on to occupy the property, they may be able to choose their preferred fixtures and fittings, etc.	+	Typically, a deposit of just 10-20% of the property’s value is required to secure an off-plan property. If purchasers then go on to occupy the property, they may be able to choose their preferred fixtures and fittings, etc.

	However, there are some risks involved with buying off-plan property, mostly related to the inherent uncertainty of buying something that isn’t actually built at the time of purchase. For instance, the property might not increase in value to the extent that is expected, or at all. This could be to do with a change in market conditions, or due to the location being in an area with low or falling levels of investor demand. Political and policy conditions may have an impact, such as if a planned infrastructure development that would increase connectivity to an area, or a regeneration project, falls through.		However, there are some risks involved with buying off-plan property, mostly related to the inherent uncertainty of buying something that isn’t actually built at the time of purchase. For instance, the property might not increase in value to the extent that is expected, or at all. This could be to do with a change in market conditions, or due to the location being in an area with low or falling levels of investor demand. Political and policy conditions may have an impact, such as if a planned infrastructure development that would increase connectivity to an area, or a regeneration project, falls through.

−	There is also no certainty about the completion date for the property. Banks and building societies are increasingly willing to offer mortgage lending on off-plan properties but can ~~often~~ stipulate that the property be completed within a certain time-frame and may withdraw the offer if it is not.	+	There is also no certainty about the completion date for the property. Banks and building societies are increasingly willing to offer mortgage lending on off-plan properties but can stipulate that the property must be completed within a certain time-frame and may withdraw the offer if it is not.

−	Another risk is that the developer becomes insolvent ~~and collapses~~ after the deposit has been put down but before the property has been completed.	+	Another risk is that the developer becomes insolvent after the deposit has been put down but before the property has been completed.

	There is also the risk that the completed property may not be in accordance with the expectations of the buyer and/or may not be to the desired quality.		There is also the risk that the completed property may not be in accordance with the expectations of the buyer and/or may not be to the desired quality.

Designing Buildings at 07:48, 12 April 2018

2018-04-12T07:48:36Z

← Older revision		Revision as of 07:48, 12 April 2018
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−	The term ‘off-plan property’ refers to property which is available for purchase before it has been constructed. This is where the phrase ‘buying off-plan’ comes from; typically relating to apartments. Off-plan property is often marketed to real estate developers or property speculators who purchase with the aim and intention of making large capital gains by taking advantage of the financial incentives which are usually offered (i.e. a discount) and selling into a rising market.	+	The term ‘off-plan property’ refers to property which is available for purchase before it has been constructed. This is where the phrase ‘buying off-plan’ comes from; typically (but not always) relating to apartments.

−	~~Typically,~~ a ~~deposit of just 10~~-~~20% of the property’s value is required~~, ~~which is seen as~~ a ~~benefit if the~~ buyer ~~intends~~ to ~~resell~~ the ~~property once it’s finished. Having~~ the ~~ability~~ to ~~select units according to tastes, needs and budget~~ is ~~another advantage, as buyers are often able to choose their preferred fixtures and fittings, etc~~.	+	Off-plan property is sometimes marketed to property speculators who purchase it with the aim of making capital gains by taking advantage of any discounts and selling into a rising market. In a rapidly-rising market, a buyer may even be able to sell the contract on, meaning they have the potential to earn a profit on the property before it is completed.

−	~~In a rising market, a buyer~~ may be ~~allowed by the developer~~ to ~~sell the contract on~~, ~~meaning they have~~ the ~~potential~~ to ~~earn a profit~~ on the property ~~before it is completed~~.	+	Off-plan property may also be desirable where an area is in high demand, and purchasers want to secure a future property.
		+
		+	Typically, a deposit of just 10-20% of the property’s value is required to secure an off-plan property. If they go on to occupy the property, they may be able to choose their preferred fixtures and fittings, etc.

	However, there are some risks involved with buying off-plan property, mostly related to the inherent uncertainty of buying something that isn’t actually built at the time of purchase. For instance, the property might not increase in value to the extent that is expected, or at all. This could be to do with a change in market conditions, or due to the location being in an area with low or falling levels of investor demand. Political and policy conditions may have an impact, such as if a planned infrastructure development that would increase connectivity to an area, or a regeneration project, falls through.		However, there are some risks involved with buying off-plan property, mostly related to the inherent uncertainty of buying something that isn’t actually built at the time of purchase. For instance, the property might not increase in value to the extent that is expected, or at all. This could be to do with a change in market conditions, or due to the location being in an area with low or falling levels of investor demand. Political and policy conditions may have an impact, such as if a planned infrastructure development that would increase connectivity to an area, or a regeneration project, falls through.

−	~~Another risk~~ is ~~that~~ the ~~developer becomes insolvent and collapses after the deposit has been put down but before~~ the property ~~has been completed~~. ~~The mortgage repayments are another consideration – banks~~ and building societies are increasingly willing to offer mortgage lending on off-plan properties but can often stipulate that the property be completed within a certain time-frame and may withdraw the offer if it is not. There is also the risk that the completed property may not be in accordance with the expectations of the buyer and/or may not be to the desired quality~~. For example, in 2013 a new-build home in the UK was found to contain up to 80 small defects~~.	+	There is also no certainty about the completion date for the property. Banks and building societies are increasingly willing to offer mortgage lending on off-plan properties but can often stipulate that the property be completed within a certain time-frame and may withdraw the offer if it is not.
		+
		+	Another risk is that the developer becomes insolvent and collapses after the deposit has been put down but before the property has been completed.
		+
		+	There is also the risk that the completed property may not be in accordance with the expectations of the buyer and/or may not be to the desired quality.

	For more information, see [[Reducing_the_risks_of_investing_in_off-plan_property\|Reducing the risks of investing in off-plan property]].		For more information, see [[Reducing_the_risks_of_investing_in_off-plan_property\|Reducing the risks of investing in off-plan property]].
		+
		+	Off-plan property had come under criticism as a result of a number of developments that have been marketed and sold abroad before they are completed, and without being offered to the local market. This has left a number of developments in London that are sold, but have very low levels of occupancy, having been bought as a 'safe haven' investment, rather than to provide accommodation.

	= Find out more =		= Find out more =

Editor at 15:42, 28 March 2018

2018-03-28T15:42:44Z

← Older revision		Revision as of 15:42, 28 March 2018
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	Another risk is that the developer becomes insolvent and collapses after the deposit has been put down but before the property has been completed. The mortgage repayments are another consideration – banks and building societies are increasingly willing to offer mortgage lending on off-plan properties but can often stipulate that the property be completed within a certain time-frame and may withdraw the offer if it is not. There is also the risk that the completed property may not be in accordance with the expectations of the buyer and/or may not be to the desired quality. For example, in 2013 a new-build home in the UK was found to contain up to 80 small defects.		Another risk is that the developer becomes insolvent and collapses after the deposit has been put down but before the property has been completed. The mortgage repayments are another consideration – banks and building societies are increasingly willing to offer mortgage lending on off-plan properties but can often stipulate that the property be completed within a certain time-frame and may withdraw the offer if it is not. There is also the risk that the completed property may not be in accordance with the expectations of the buyer and/or may not be to the desired quality. For example, in 2013 a new-build home in the UK was found to contain up to 80 small defects.

−	For more information, see Reducing the risks of investing in off-plan property.	+	For more information, see [[Reducing_the_risks_of_investing_in_off-plan_property\|Reducing the risks of investing in off-plan property]].

	= Find out more =		= Find out more =

Editor: Created page with "The term ‘off-plan property’ refers to property which is available for purchase before it has been constructed. This is where the phrase ‘buying off-plan’ comes from; typ..."

2018-03-28T15:39:21Z

Created page with "The term ‘off-plan property’ refers to property which is available for purchase before it has been constructed. This is where the phrase ‘buying off-plan’ comes from; typ..."

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The term ‘off-plan property’ refers to property which is available for purchase before it has been constructed. This is where the phrase ‘buying off-plan’ comes from; typically relating to apartments. Off-plan property is often marketed to real estate developers or property speculators who purchase with the aim and intention of making large capital gains by taking advantage of the financial incentives which are usually offered (i.e. a discount) and selling into a rising market.

Typically, a deposit of just 10-20% of the property’s value is required, which is seen as a benefit if the buyer intends to resell the property once it’s finished. Having the ability to select units according to tastes, needs and budget is another advantage, as buyers are often able to choose their preferred fixtures and fittings, etc.

In a rising market, a buyer may be allowed by the developer to sell the contract on, meaning they have the potential to earn a profit on the property before it is completed.

However, there are some risks involved with buying off-plan property, mostly related to the inherent uncertainty of buying something that isn’t actually built at the time of purchase. For instance, the property might not increase in value to the extent that is expected, or at all. This could be to do with a change in market conditions, or due to the location being in an area with low or falling levels of investor demand. Political and policy conditions may have an impact, such as if a planned infrastructure development that would increase connectivity to an area, or a regeneration project, falls through.

Another risk is that the developer becomes insolvent and collapses after the deposit has been put down but before the property has been completed. The mortgage repayments are another consideration – banks and building societies are increasingly willing to offer mortgage lending on off-plan properties but can often stipulate that the property be completed within a certain time-frame and may withdraw the offer if it is not. There is also the risk that the completed property may not be in accordance with the expectations of the buyer and/or may not be to the desired quality. For example, in 2013 a new-build home in the UK was found to contain up to 80 small defects.

For more information, see Reducing the risks of investing in off-plan property.

= Find out more =

=== Related articles on Designing Buildings Wiki ===

* Buyer-funded development.
* Developer.
* Hope value.
* Investment property.
* Landbanking.
* Project-based funding.
* Property development finance.
* Real estate investment trust.
* Residual valuation of land.
* Shared ownership.
* Speculative construction.
* What is a mortgage?

[[Category:Contracts_/_payment]] [[Category:Property_development]] [[Category:Public_procedures]]