Selling an off plan property is rather different to selling a completed house, which means there are various elements that require careful consideration.
Possibly the most important aspect is your property’s price tag. Since off plan property often qualifies as a ‘work-in-progress’ project, prospective buyers will expect a discounted price.
It is advisable not to personalise the property too much as it may result in a detraction of interest since most off plan buyers tend to have their own plans in mind.
You should take into account what type of investor will be interested in your property. For instance, if you are planning to build a large block of flats, it might be better to gear your marketing campaign towards property investment clubs. Some investors buy properties to let them out and others have the specific aim of ‘flipping’, avoiding stamp duty and even taking out a mortgage.
‘Flipping’ is the act of buying properties and selling them on as quickly as possible, before they are complete to turn an immediate profit. It relies upon a rising market to be profitable.
It is fundamental that you are up-to-date and on top of the legal aspects of selling off plan property since they differ to selling a normal home. The location, size and purpose of your property can all have an effect on legal restrictions and regulations. Insurance companies have specific policies, and if they are not handled with care your property may become unsellable for years to come. It is recommended that you speak to your solicitor and an expert in selling off plan property before making any important decisions.
You should contact off plan property sales specialists as property agencies usually only deal with completed properties. There has been a rapid increase in the number of companies offering off plan property sales services.
As well as paying income tax, you should also be financially prepared to pay capital gains tax if the property is not your primary residence.
The regulations surrounding selling off plan properties have changed a great deal in the last decade or so. So any benefits you may have had a few years ago may no longer exist. It is recommended that you keep track of the legal boundaries in order to give yourself a clear picture of where you can and can’t go wrong.