Beginner’s Guide to Real Estate Investing

Reduced prices

One of the main attractions of off-plan properties is the low prices associated with this type of investment. Investing early allows the buyer to secure an asset below market value. Property values ​​are generally expected to increase by the time a construction is completed. Sometimes investing in multiple properties with the same developer who has an array of upcoming projects can also result in additional discounts.

Capital appreciation

If you decide to invest early in an upcoming investment, the price of the property could increase throughout the construction process. Ultimately, this would provide real estate investors with instant equity in the end. House prices in the UK tend to increase rapidly, with data showing prices increasing by around 4% on average each year. Capital appreciation is not guaranteed, which is why a medium to long term investment strategy is always recommended. Location plays an important role in capital appreciation. The price of a city’s real estate increases if there is a strong demand for housing, growth prospects and future investment.

Comply with the latest health and safety standards

Environmental and safety standards are met by new homes built by reputable developers. When developments are built to the highest possible standards, they can offer long-lasting investment opportunities.

Almost all new homes are rated A or B for their energy efficiency, making them more energy efficient than most existing homes. To date, rental buildings must have an Energy Performance Certificate (EPC) of E. Government officials also discussed the requirement for buildings to achieve energy efficiency of C by the end of 2025 for new rentals, and C for all rental properties by the end of the year. April 2028. Given these changes on the horizon, off-plan property offers better investment potential. Modern tenants are also increasingly interested in living in newer, greener homes, making new construction an attractive option for rental investors.