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Off-Plan Guide |
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A Guide to buying Off Plan Property.What is Off-Plan and Why Buy Off-Plan Property?Investing in property off-plan (i.e. before it's even built) is becoming a reliable way of maximising the investment opportunity. By working directly with developers, you can often gain early access to property investment opportunities long before they have been released to other investors. Property is the only proven method of wealth creation that always delivers time and time again. Whether you are looking to secure an additional source of income, to make quick profits, provide security for your pension or build a substantial property portfolio. In the Red Sea Riviera you can and you can get "The lifestyle you deserve"...We want to help you fulfil your dream of a holiday home or retirement property in a fantastic region. The Red Sea Riviera is the latest hot new development in the overseas property market. Prices are unbelievably low compared to Mediterranean destinations and the market looks set to boom offering a great return on investment. The key to investing in international property is to get in at ground level in areas set to boom, thereby allowing maximum capital growth and investment return. The Red Sea Region is the latest area for investor focus. Prices in comparison to other markets are unbelievably low. This is the next boom area of the property investment market, although this is already changing and now is the time to take advantage of this opportunity. The superb climate and rapidly appreciating property potential make it the place to put your money today for a great investment tomorrow! When is a good time to purchase property?
What is buying Off Plan?Off Plan purchases have provided spectacular returns for thousands of investors across different parts of the world over recent years. Clients are most suited to an Off Plan property investment when their main priority is return on invested capital, or when they are interested in buying a property for their own use and do not need to occupy the property immediately.Buying Off Plan simply means reserving a property on a new development before the property is completed, often before construction has started. Working from the architects plans. The developer is obviously very keen to sell as many properties as early as possible to reduce their exposure and to obtain favourable development loans from banks and investors. Competitive PricesTo help speed up the sale of properties at this early stage prices are normally extremely competitive as the developer has little to show potential purchasers, except architects' plan and artists' impressions of the development. In some cases show apartments may also be available which generally give a good indication of the standard to be expected in the finished product. What are the reasons for buying off-plan?The essential reasons that make buying Off Plan such a good investment are the timing of payments, and the fact that developers are prepared to price below market value before the completion of construction. This will give you instant equity. In this way an investor is benefiting from appreciation on the full value of his property during the period of greatest growth, while outlaying only a fraction of the price. For example: Purchase Price: 100,000 (Jan 2010) Deposit payable: 30,000 + payments in instalments Let us assume that you sell the property in June 2010 just before completion and that you sell for 150,000 . Your profit is 50,000 which is obviously a 50% return on the 100,000 asking price. However, since you have only had to pay 75,000 in deposits & payments, your actual return on the funds invested is 100%. Many people finance the 30% deposit by releasing equity for their existing property and so do not actually have to have any liquid cash to take advantage of this profitable investment opportunity. If you would like advice on releasing equity or have any other finance related questions please contact an independent financial advisor in your country of origin. Question ?What other form of investment delivers on average a 100% increase on investment every 6-7years? Pensions, stocks/shares, ISA's etc are still very volatile and have never been a low risk investment option.The large financial institutions are now investing heavily in property for the first time, even pension companies are investing your money in property. Why? Because it's a low risk with maximum gain. How is such a high return possible?The following factors all help increase the value of a development during construction.1) Lower than 'market' prices offered by the developer initially. As discussed above, the developer is keen to sell the properties as quickly as possible so prices are normally very competitive. 2)Best properties get sold first. Normally when a development is released, a pattern emerges. i.e. penthouses, corner units and ground floor with private gardens tend to sell first which in turn leads to price rises. 3) Show home available/building commences. As soon as the main structure of the development starts to take shape and/or a show home is opened prices normally increase substantially as prospective purchasers can see much more easily what the finished development and individual homes will look like. 4) More units sold. As the developer starts to sell more and more properties the original prices will continue to increase, which obviously means that if you wish to sell your property it will be worth more. 5) Final Completion achieved. Once the development is finished you will be the owner of a brand new apartment/villa in a new development with beautiful gardens and a pool. The person who wants to buy at this stage will be prepared to pay significantly more for a property they can move into or rent out immediately than they would have paid for just a plan on an a piece of paper and a plot of land. The reasons listed above explain why prices should normally increase as a development is built. It is not uncommon for a property to be bought and sold again before a single brick has been laid, and even sold again several times before final completion. Have I Missed Out On The Property Boom? Absolutely not!! There has never been a better time to buy property. Over the past 2 years the Red Sea Region property market has realised between 25% and 30% Capital Growth increase per year. In some cases others have experienced even higher capital appreciation on their properties! Buying Off Plan Property has proved time and time again to be one of the best investments around and the Red Sea Region is the ideal location ! |
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| For more Information or Enquiries, please email : info@pioneer-property.co.uk | ||
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