New Build and Off Plan Buy to Let Investment
Buying a brand new property as a buy to let investment can make a lot of sense. Being new it will be covered by an NHBC 10 year buildings warranty, or similar, won’t require decorating, will be well insulated, energy efficient, built to the latest building standards, will have modern features and an up to date kitchen and bathroom(s).
Furthermore, many developers offer furniture packs that can be included in the purchase cost and mean the property is ready for a tenant as soon as completion takes place.
Prospective tenants will appreciate the fresh, clean accommodation and this makes these buy to let properties highly sought after. Yields can be very attractive and some developers even offer guaranteed returns for a set number of years, giving you and, where appropriate, your lender, reassurance that it is a sound investment.
Where to look for new build buy to let properties?
The first place to look is in your local newspaper or local estate agents. These will advertise new developments in your area and you can ask estate agents their views on how they would appeal to prospective tenants.
Off Plan Purchases
In some cases you may be able to buy off plan, meaning the development hasn’t started yet or is in the early stages of development. Buying off plan usually means getting a discount on the property and in some cases will allow some adjustments to the final property specification. However you will need to put a deposit down with no firm completion date and as with any new development, you could be in competition with other landlords when the properties are completed.
Property investment specialists usually market off plan property availability, so try Knight Knox, Off Plan World or Property Frontiers for a start and don’t forget the new homes sections of Rightmove and Zoopla *
Are there any downsides to new build and ‘off plan’ purchases?
As with any new property there could be snags that need rectifying and these will need to be coordinated between you, the tenant and the builder.
If other buy to let investors are buying in the same development, there could be a number of properties, the same as yours, being marketed for rental at the same time.
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