If you are looking into buying an overseas property it is worth considering buying an off plan property. You may think this sounds crazy but more and more private investors are choosing off plan property as they are looking to maximise their investment with good returns.
Buying off plan reaps rewards for anyone that invests as trends over the last few years have shown huge profits for investors.
How does off plan work?
Buying off plan property means exactly that. You are buying something that is not yet constructed. At this stage of development you can choose and reserve the property of your choice on a new development before any construction takes place. Some may see this as madness – buying a property without seeing it. However, some great benefits can be had from buying off plan.
So, what are the benefits?
The main benefit is you can purchase the property at a considerably less purchase price then a constructed property. The reason you pay less money is because you are buying from an architect’s drawings on an empty plot of land, which means the prices are set accordingly. Your deposit is much less than it would be on a constructed property which means long term your rewards will be greater if you have purchased the property as an investor. As well as paying less you also get to choose exactly which property you can buy on the development. Off plan means first come first served. So, rather than miss out on the corner plot or ground floor apartment – properties that usually sell first on developments, you are getting the opportunity to buy what you want.
Another benefit is as soon as the development starts taking shape and a show property is constructed and open for viewing the property purchase price increases substantially. Buyers who don’t like to take risks will pay more on a completed property as they will see the completed property with private pool, private gardens and interiors as opposed to paying less for an empty plot.
Another added benefit which is more of a bonus is if you sell your investment before or on completion you don’t have to pay any Capital Gains Tax to Mr Taxman, this is regardless of the amount of profit you have made.
So buying off plan is profitable?
When you buy off plan you can see a considerable profit returned on your overseas property investment in a short period of time. Off plan doesn’t just mean buying a property on a development pre-construction, it means as an investor you become the actual owner of the property by just investing around 30% of the property value at the time of buying. This means a considerable profit can be made on the investment.
When choosing to buy an overseas property investment, many private investors choose a SIPP property investment. This is when a personal pension fund is used to finance the property.
Tags: Investment Abroad, Overseas Property Investments, Pension Investment, SIPP Investments, SIPP Pension, SIPP Property
