International Real Estate Investment | Eye on Worldwide

UK Off Plan Investment

Posted on 24. Jun, 2009 by Jane Sait in Off Plan Property

It would seem a strange time to invest in the UK housing market at the moment however that is exactly what some people are doing. Indeed some investors are advising that now is actually the best time to invest in the UK market.

But how can this be when the UK is in a recession?

There are many factors that have encouraged investors to continue to purchase off plan in the UK. These include:

Falling Interest Rates. The Bank of England Base Rate has dropped to 0.5% which has resulted in some very competitive mortgage interest rates available to investors.

Supply and Demand. Figures currently show that there are not enough new homes being built for the annual demand that the government has stated.

Developer Incentives. Many developers are offering incentives to investors at the moment including Below Market Value prices.

New Investment Vehicles. A property deposit guarantee is now available on selected off plan developments. This in affect means that investors can buy the guarantee at a fraction of the cost of the deposit, enabling investors to postpone payment of the deposit until completion of their property.

So where is best to invest?

No one can ever be 100% certain on where the best place to invest is and whether property prices will rise or fall; however, a lot of people are suggesting that London will be a key growth area again. In particular the areas in and around the Olympic Village have been highlighted for good returns on investment. When choosing your UK off plan investment there are certain factors to look out for, as is the case in any country. For example, is there good infrastructure in the area, is there improving infrastructure planned and what facilities are nearby or onsite.

Current Investment Opportunities:

Off Plan Development in Hayes, Middlesex
Below Market Value Prices Negotiable.
Directly adjacent to Hayes and Harlington Station which will be on the new Crossrail line, scheduled to open for service in 2017, and will be offering 10 trains an hour from the station allowing passengers to get to Bond Street in 26 minutes, Liverpool Street in 31 minutes and Canary Wharf in 38 minutes.
Facilities and amenities of the development will include:  landscaped grounds, valet parking, 24 hour concierge and security, gym, pool, dance studios, spa, treatment rooms, 4 star boutique hotel, restaurants, bar, gallery, express supermarket and a coffee shop.

Off Plan Development in Canary Wharf, London
In the heart of the Canary Wharf complex, and designed by world renowned architects Skidmore, Owings and Merrill, this development will feature a striking 43 storey tower and will have fantastic views over the docks, River Thames, Canary Wharf and the City. There is superb infrastructure in the vicinity with the Crossharbour light railway station adjacent to the development and riverboat connections form Canary Wharf pier nearby. Canary Wharf has over 200 bars, shops and restaurants as well as being a thriving business district.

Off Plan Development in Canada Water, London
This riverside development has a multimillion pound investment program in the immediate vicinity. It is adjacent to Canada Water Jubilee Station and the Surrey Quays shopping centre. The development will be an urban retreat as it is surrounded by the Southwark Park boating lake and gardens, ecological Russia Dock Woodlands and the 5.2 acre State Hill nature reserve.

Why are these good investment opportunities?

As well as the already mentioned investment highlights of the developments, such as location and infrastructure, these developments are all available to purchase using a financial guarantee service. This service is a secure promise which will allow you to exchange contracts on an off plan investment property. All you pay until completion is an application fee and the guarantee fee. You will then not need to pay your deposit until completion.
This is not something that will appeal to all investors however it is ideal for others. For an example of the costs involved please see below:

1 bedroom apartment with Balcony in Hayes Middlesex

Level 2        473 square foot        Property Value £203,000
Guarantee fee based on a 20% deposit over 24 months will be £3,857 *

And for the luxury end of the market…..

3 Bedroom Dockside Penthouse with terrace in Canary Wharf

Level 13    1315 square foot    Property Value £1,450,000
Guarantee fee based on a 20% deposit over 24 months would be £27,550 *

* The above are examples only. For definitive prices and further information please email ro@blueskyinvest.eu
The Guarantee Fee is also available for some other UK developments and some overseas developments. Please email ro@blueskyinvest.eu to find out more.

Tags: investment, UK off plan