Buying off-plan property – when you purchase before construction finishes – is an extremely good way of earning a considerable amount of capital appreciation. You lock in your purchase price at an early stage, and the market will rise if you have selected a good investment area. In this way, your property should be worth more than what you paid for it straight away following completion.
If you can find an off-plan property in a growing city centre which suits your long-term strategy, then you are likely to have a successful investment long into the future. If you can also find a developer with a strong track record and an outstanding dedication to customer service at every stage of construction and beyond, then you are in the best possible situation.
Any investment contains some level of risk, but here are some simple things you can do to mitigate this and ensure that your investment is as protected as possible.
Do your research on the developer
The first and simplest thing to do is research the developer to make sure that they have a track record of delivering what they say they will. Any reputable developer will be able to demonstrate a history of completed, successful developments which can reassure you. Likewise, a good developer may not have a flawless record, but they will be able to account for and explain any difficulties that have occurred on developments in the past.
Researching the developer also includes finding out what they do after completion. Many developers will walk away following completion and leave investors to deal with letting and managing their property themselves. In contrast, the best developers will operate an in-house lettings and property management company to take over post-completion and continue providing you with a first-class service. If the developer goes to these lengths, you can rest assured that the same level of care will also apply at all other stages of the construction process.
At Property Alliance Group, this holistic approach to service is summed up by Alliance City Living who not only take over following completion to provide a first-class lettings and management service, they are also the building managers for all Group developments. They are involved at an early stage and have a connection to the development and the landlord that other lettings agents cannot replicate – the epitome of the full-service customer care that Property Alliance Group strives for.
Nadia Aghtarafi, Lettings Manager at Alliance City Living, said: “We are proud to be part of Property Alliance Group and work directly with investors to give them the best possible service following completion. As part of the Group, we are fundamentally linked to investors in a way that other lettings and management companies aren’t, giving us a vested interest in ensuring that your investment performs as strongly as possible.”
This level of service which carries through from the initial conception and design of a development through to the ongoing property lettings and management is rare, and a good indication that investing with this developer will provide future security.
At Alliance Investments, we embrace the holistic approach that defines Property Alliance Group and apply it to all our work. Other developers choose to work with us because of this approach, and we offer the same end-to-end service to them, even when they are not part of the overall Group. An important part of which is we make sure to carefully research every developer who wishes to work with us in order to provide you with the best, most reliable investments on the market – no matter whether they are part of our Group or not.
Buy in the right location
One of the most important ways in which you can safeguard your investment is by searching out the best investment markets where prices are rising, and the population is growing. Finding the right location will make or break your investment, and choosing a market where property is booming adds a new layer of security to your investment.
The two major considerations you should look for are:
- A growing population
- A growing economy
If you can find somewhere – like Manchester – with both of those factors, then you are giving yourself the best chance to succeed. More people and more business means more competition for properties – which leads to higher potential profits and greater security.
If you follow this advice, then you are likely to arrive in a market with a high rental demand – and finding that type of market is the best way that you can protect your investment. By ensuring demand, your property will be profitable for many years to come, and your investment will be secure.
Does the area contain a high number of young professionals? Are local letting agents receiving a high number of enquiries about their properties? If you are unfamiliar with a market, it is a good idea to find a local property expert to talk to who can give you the most up to date information about the market.
You should also take long-term rental trends into account. A range of factors including the local economy, infrastructure investment, quality of employment on offer and more will influence rental demand in the future, so it pays to do your research in all of those areas and buy where people are going rather than where they are now.
To do this, you should consider future population projections from reliable sources, and also look into major regeneration zones, businesses moving to the area, universities expanding and other similar plans.
Overall, it is fair to say that buying in a place with strong and growing rental demand is one of the fundamentals that all investors should stick to. Read more about the property market fundamentals you should follow in 2021 by click here
Buy to let property in Manchester is one of the strongest investments you can make, as well as being one of the most reliable on the market. Want to learn more about buying property in Manchester? Click here for more information today
