What Does Buying Off-Plan Mean?
Buying off-plan is an effective and popular route to purchasing a new-build property. Off-plan is becoming the norm and offers buyers flexibility in the journey. While the process can sometimes seem complex, we’ve created a handy guide to clarify what off-plan buying entails, its benefits, and important considerations.
What does it mean to purchase off-plan?
Buying off-plan is when a property is purchased before construction has been completed. The buyer commits to the property based on architectural plans, concept homes, and the developer’s vision.
Purchasing off-plan has become increasingly popular, offering buyers the chance to secure a ready-to-move-in home in today’s competitive housing market. This purchasing option ensures that owners are the first occupants of the property, which is an attractive prospect for many individuals and families.
What are the key advantages of buying off-plan?
There are plenty of benefits when buying an off-plan property, including:
Developer incentives
Reserving a plot early can occasionally come with beneficial incentives, such as extra fixtures and fittings. Timely reservation allows the owner to invest early in the property as it will continue to increase in price. This is even more beneficial if the developer improves the local area, adding further value and popularity to the location.
Customisable homes
Purchasing a property before final construction creates the potential for customisation, with buyers having the ability to consider different design aspects such as kitchen colour schemes, carpets and paint. Depending on the development stage, there may even be opportunities for further adjustments. This results in the buyer having additional control over the property whilst mitigating the need for decorating upon move-in, ensuring less maintenance and DIY.
Modern properties
A key benefit of moving into a newly built property is that you’re receiving contemporary homes designed for modern standards, generally being more energy-efficient and even including sustainable smart technology within the property.
Warranty
Off-plan property typically comes with a builder warranty to protect you from any issues that could potentially arise after the property’s completion. This gives owners peace of mind, ensuring their property is protected even once occupied.
Off-plan property considerations
Before purchasing any property, there are always key considerations, including:
Timescales
While developers typically provide estimated timeframes, completion dates for off-plan purchases may vary due to potential construction delays. This is an important consideration for buyers, meaning that future homeowners should remain flexible during the process.
Market fluctuations
Depending on how long the build time is on your property, market fluctuations can happen at any point during the construction period. This can result in a loss of property value or a significant increase, so it’s imperative to be aware of the housing market structure so that you can establish well-informed decisions.
Property specifications
It’s crucial to understand what is included within your property price and if there will be any expected additional costs. It’s important to thoroughly review all documentation and have a clear understanding of what to expect from the developer and your off-plan solicitor.
Purchase details
You should check with the developer about your council tax band, prospective energy costs and potential usage. This is imperative so that you understand your affordability and monthly outgoings, especially when consulting with mortgage lenders.
Mortgage offers
Ensure you seek out reputable support to find a lender that provides a mortgage applicable for off-plan properties. Not all providers offer mortgages for properties still under construction, but many buyers successfully secure off-plan mortgages right across the UK, with the right lender.
The off-plan purchase process
Find and reserve your plot
Once you have found a reputable development that suits your home and financial requirements, you can begin to reserve a property plot. Occasionally, you can visit the area and receive mock-ups of how your home will look. Typically, a small fee is required to secure the plot.
Legality processes
As the popularity of off-plan rises, so does availability from lenders. A mortgage advisor or broker can help find the best deal for you, ensuring you specify your mortgage is for an off-plan property. A solicitor specialising in off-plan purchases is invaluable so that there is a clear understanding of the construction process, reducing solicitor delays.
Quality inspection
It is paramount to obtain your property floor plans and check they meet the project standards and any inclusions expected are met. Conducting a thorough inspection of the property before move-in ensures that any issues that may arise are taken care of before the completion date.
Move into your new home
Now that the property is finalised and inspections have been carried out, you can exchange contracts and pay your deposit, waiting for you to move in on your completion date. Take time to read through your homeowner guide upon move-in, ensuring you understand protocol and points of contact should you require assistance.
Secure your future home with Sky-House
Sky-House develops eco-conscious homes and vibrant communities across South Yorkshire, ensuring sustainable living with green outdoor spaces and minimal maintenance.
We prioritise our homeowners, offering a dedicated online portal for queries, quality home inspections, and a two-year defect warranty, supplemented by additional insurance protection from years three to ten, for added peace of mind. If you’re looking for a reliable developer that provides innovative and stand-out homes on the market, you’ll be sure to fall in love with our Sky-House neighbourhoods.
For more guidance, get in touch with a member of our friendly team today or book a viewing at one of our newly built properties.
