Why I DON'T buy off plan properties | Property Investment UK

To buy to not to buy off plan properties? I personally will NOT buy off plan properties and in this video will be explaining why! Do you invest in off plan properties? If so, do you like them? Have you had any issues with them? Would you rather buy an off plan over a 50 ear old BTL? Let me know in the comments below as id love to hear everyone thought on them!

------------------------------------------------------------------------------------------------------
00:00 - Intro
00:12 - What is a off plan investment?
00:49 - Why buy a off plan investment?
02:22 - Downsides
04:43 - Limited adding Value
05:26 - Exit route
06:42 - Lower Yields
07:41 - Is it going to get built?
09:31 - Should you buy an off plan property?
------------------------------------------------------------------------------------------------------

Before you go make sure you've subscribed to not miss out on the latest property investment videos!

[PotterSpurn]

I took a big risk years ago when European property investment was all the rage in the 2000s, and I bought off a flat off plan in Sofia Bulgaria. I bought with cash as there were no morgages at the time. The development took four years to build and it all looked wonderful on the plans and did when newly built too. I soon got shot of it though because I was very uneasy about how renting it out would be successfully managed with me living in the UK, and the house builder guarantees weren't like they were in the UK and I thought that the building could foreseeably morph into a 'stack a prole' look-a-like like so many of those horrible ex Soviet blocks of flats if locals rented them out, what with towels and sheets dangling from the balcony, as was their custom. The rent I could command wasn't that great either. Something like £200 pm was suggested, which is a fortune for the locals out there, but not much here in the UK, especially with the risk involved of the flat not being adequately Agency managed on 30% of the rental charged. Furthermore, the exchange rate was excellent during the time I went out there to see it at 1 euro : £1 making me more money. So I doubled my money just from capital appreciation based on design to build and took advantage of a good exchange rate and sold it whilst it looked at its best and I could command a good price. I don't regret my decision and now invest in REITS and the individual Developer shares, along with other stocks.

My game plan is now to make enough from my investments through capital appreciation and dividends after retirement to cover the entire rent on my London based Rent Act 1977 flat in a nice leafy road with a forecourt car space. Unfortunately, I was not able to buy in the UK when prices were low enough, so I kept living where I live now.

[davidcalvert-smith]

Touchstone have started selling off plan properties. They are being sold as some kind of holy grail of property investing as you get 2 years capital appreciation while only putting down 5-10%. However, there is no mention of the downside; owning properties lease hold, inflated prices, no income on the 5-10% for 2 years, etc etc. Not to mention capital appreciation is by no means guaranteed.

[mkyuen]

Many of time investors pay themselves the rental guarantee. The money is already included in the price. Moreover, one of the biggest problem is the deposit you pay for new build has no return until the date it is completed and has tenant.

[jameswright]

Jamie, great videos. loving what you do. could you do a video explaining the specifics of what happens/what you do at the end of interest only mortgage? stupid question? it needs repaying in full at the end of it, are you relying on 75% appreciation to have to funds available but then remortgage to release the funds to reuse? but surely you have already refinanced and pulled more cash out? can you please explain your situation specifics strategy? thanks James

[davJames]

Hi Jamie, I am looking to buy my first home and I was considering buying an off plan in Manchester City centre because they are advertised as “34% below market value”. Is this basically a load of BS?

[colinshurey]

Very popular here in Australia mainly with town houses and units
But i have heard so many horrer stories
Stay away from glossy brouchers

[jamesledden]

You forgot service charge and ground rent J!

[mrkhaled]

I bought a off plan in uae and lost a lot of money never again

[qassaf]

stay away from leasehold property just dumped 5 leasehold properties will never own a leasehold ever again its a con