Why Off Plan Property = Higher Yields
A recent report has found that property investors seeking the highest rental yields are increasingly looking at newly built homes.
Buying off-plan is often cheaper in the UK than buying an existing property because developers will usually offer a discounted sale price to attract investors to their projects.
There has been an increasing demand for housing as of late. House prices in the UK have made things even more difficult for first-time buyers to get onto the housing ladder, meaning many are renting until much later in life.
Recent changes in lifestyles have also shown increasing signs of people choosing to “rent for life”.
People enjoy more flexibility and being able to move quickly when new career prospects present themselves. Another rising trend is young people leaving London to relocate elsewhere, which often involves renting.
One of the most significant selling points of a new property is its aesthetic benefits – i.e., its fresh, modern design.
Those who favour a more contemporary look in their home, such as students or young professionals, are often drawn to stylish new-build houses and apartments with a range of amenities.
This is excellent news because property investors need high rental demand for their venture to succeed.
By purchasing a property considered desirable by their target tenant, interest from renters will be higher.
And, with increased interest comes the potential for increased yield.
Alongside this, if you choose to go down this route, as off-plan properties are cheaper to buy, it also means that there is a stronger capacity for capital growth, meaning you can expect an even stronger capital percentage increase over the years.
Are you interested in investing in a new-build property?
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