Finefair is in a great position to advise our clients. Whether they are looking to purchase, are thinking about management, or want to look at things like guaranteed rent, we can offer a service. We may be the top company for block management Harrow has, but we are also successful in various other parts of London. Let us assist you and work to maximise value.
Investors are always looking for the best deals, especially in a highly competitive market like London. As a result many of them act quickly when there is a chance to purchase. Consequently many buyers commit to purchasing new homes off-plan. The strategy can pay off but there are some risks to be aware of. We would like to discuss the benefits and potential pitfalls.
What is the risk?
The most important thing about buying off-plan is you are committing to paying a set price before a property is built. That means you could potentially end up over-paying if property prices decline. It is difficult to accurately determine what the market will do. This is especially true if there is a lot of time before you can move in. As a result there is a gamble to take.
The other side of investing off-plan is you could purchase a property that ends up with a much higher value than you pay. The values in an area may keep rising while your new home is being built. Again it is a gamble because you can’t guarantee that price rises will continue, even if you buy in an area that has seen plenty of growth recently.
An important thing to keep in mind is that you may struggle to get a mortgage if you buy off-plan too far in advance. Lenders may be unwilling to lend to you more than six months before completion. This results in a difficult situation – either put down a deposit without a mortgage or wait until you can borrow.
As one of the most experienced teams for block management Harrow has, we understand people have different investment strategies. We are happy to offer advice and a selection of useful services. If you need us, please get in touch.