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Buying off-plan is purchasing a flat or house before the property is built.
Literally, you're buying by looking at the plan and may not even have a show home to view before putting down a deposit.
Although buying off-plan sounds risky, thousands of new homes are sold this way yearly without any problem.
Off-plan purchases are good if home prices rise, but they can be problematic when the market falls.
Learn more about buying off-plan and the steps to complete your purchase.
Almost half of newly-built small houses(46 per cent) and flats (43 per cent) were bought off-plan last year, according to research by estate agents Hamptons.
Buy-to-let investors accounted for one in five of the sales.
The data revealed most off-plan sales are in neighbourhoods with gross rental yields of eight per cent or more. That means most off-plan sales are in the North of England, where homes are cheaper and push up rental yields.
Off-plan homes can become great investments for buy-to-let landlords, but many pros and cons are triggered by a rising or falling property market.
So what are the benefits?
Top of the list is a chance to negotiate a substantial discount and to grab the best plot on a new development.
Many off-plan buyers find their new property is worth more than the purchase price when the developer hands over the keys.
Other early bird opportunities include choosing your fixtures and fittings.
But off-plan home buying is not only about the benefits - there are also drawbacks to consider.
Developers can take a year or more to complete a home. The risk is that the market can turn during that time, and the property value at hand-over may be less than the purchase price.
The builder will ask for a deposit of £1,000 or more, which is non-refundable if you pull out of the deal - and depending on the terms of the contract, the developer could sue if you fail to complete.
Buying off-plan is not much different from any other house purchase, but there are some issues around timing that you need to know about.
An off-plan home is a property purchased before construction is completed.
A newly built home is ready to move into, with at least painted walls and ceilings, carpets, fitted kitchens and bathrooms.
Landlords can buy as many off-plan homes as they like, but practically, the glass ceiling on numbers is how many deposits, mortgages, or cash purchases they can afford.
Many lenders have a borrowing or mortgage cap, for example, five loans with the same lender or loans worth £1 million.
Using the developer's lawyers when buying off-plan is tempting, but doing so can create a conflict of interest. It's better to hire an independent firm.
Ask your lawyer what deposit protections you have before handing over any money. If the company goes into administration, you will likely become an unsecured creditor.
Most developers have a bond or insurance that covers building out the site in the event of financial problems.