Off Plan

[rich hand]

I am looking into buying off plan through the various companies that secure property in bulk eg. new-homes-direct.com, TIC Invest etc. My biggest problem in choosing such a company is trusting their sourcing of developments, projected rental figures and the future of the company. I would be very glad of any advice. Cheers

[Stevie]

Be very careful by buying properties off-plan and by using property companies who advertise this.
I have personally never bought off-plan but have come across too many people who have been stung by these purchases.
generally they get over-valued and you can find yourself in a negative equity scenario almost immeditaely.
Tread very carefully.

[rich hand]

What if the property has been valued by an independent RICS surveyor?

[rich hand]

Very few landlords seem to know about off plan. The response on another forum was zero. Im wondering if 'landlords' are more concerned about looking after their 1 or 2 or maybe several properties rather than property investors who are more concerned about continuing the investing?!

[Poppy]

Is it free advice you’re after?

Don’t give your money to property clubs and developers selling off plan UNLESS you yourself (and preferably professionals working solely for you) verify all of the valuations and assess the likely market. ESPECIALLY evaluate the likely impact of everyone in your newly-built development doing exactly the same thing as you - expect it.

You’re getting hardly any response because professional landlords (whether they own one or one hundred properties) are rather fed up of hearing about people sounding off about these perceived get rich quick schemes. This is a business. People should learn about the business from many different sources before they buy into it.

Think about this: would you buy a mini oil field from an oil field club at a discount? Of course not, because something as good as an oil field would not be sold by the people who own it in the first place.

[rich hand]

Is it free advice you’re after?

Don’t give your money to property clubs and developers selling off plan UNLESS you yourself (and preferably professionals working solely for you) verify all of the valuations and assess the likely market. ESPECIALLY evaluate the likely impact of everyone in your newly-built development doing exactly the same thing as you - expect it.

You’re getting hardly any response because professional landlords (whether they own one or one hundred properties) are rather fed up of hearing about people sounding off about these perceived get rich quick schemes. This is a business. People should learn about the business from many different sources before they buy into it.

Think about this: would you buy a mini oil field from an oil field club at a discount? Of course not, because something as good as an oil field would not be sold by the people who own it in the first place.

They are not get rich quick schemes to me. Each 10k spent is earning 10k. Any refurb will earn me the same.

Re. last paragraph, these 'clubs' etc. will buy some of the developments themselves as well as selling on therefore spreading their risks/investments.

There will be genuine esate agents who will be offering 15% genuine discount. As with the other similar post in the forum at the moment, we just want to know who we can trust.

[Poppy]

Trust your own, independently-sought research.