Published: 4th March 2019
Investing in resale property provides investors with a wealth of opportunities that can’t typically be taken advantage of when buying off-plan, such as the ability to negotiate a better price and make savvy investment decisions based on those of previous investors, landlords and even tenants.
Resale property is the ideal investment if you’re looking to enjoy both capital growth and year on year rental income, but without the risks associated with buying an uncompleted development. Boasting a range of different benefits, resale property has the ability to deliver lucrative returns like no other investment.
When buying off-plan or new build investment properties for sale, the chances are you’re going to be paying slightly more than the unit itself is actually worth, and this is due to developers building in additional costs into the overall price.
Luckily when it comes to investing in resale property, you have the power to negotiate a better deal as you are negotiating with another investor directly rather than a developer. Vendors of established properties are more motivated to secure a quick sale and are therefore more flexible when it comes to price. Whether due to personal reasons or financial difficulties, sellers may be in a rush to liquidate their property in a speedy sale, which gives you a chance to haggle on price.
One of the driving factors of choosing resale property as opposed to off-plan is the fact that it is already completed and fully operational. Unlike off-plan property where investors have to wait 6 to 12 months for completion and to start reaping the financial benefits of their investment, those who choose to invest in resale can start enjoying their returns from the offset.
Tenants can move into a resale property immediately instead of having to wait months, even years, for the completion of a new build property, or may already be residing in the property at the time you buy. This means that your investment starts to pay off from day one as you secure rental income month after month.
Not only do resale properties allow you to start earning rental income straight away, they also help to predict monthly rental income. By looking at the previous rent prices past and current tenants have paid, you can work out how much you need to be charging and your monthly profits after expenses. When conducting extensive research into the value of regions, neighbourhoods and neighbouring towns, you can ensure that you don’t over capitalise on your investment – a risk that many investors face when choosing to invest in off-plan property that has less comparable data.
Off-plan properties can, from time to time, face difficulties with their developer and in the most extreme conditions, can even fall through before the development has been completed. This brings with it a certain level of risk when purchasing off-plan property as your investment could face lengthy delays or you could be left out of pocket altogether. With resale property however, you have the peace of mind that the development has already been completed and has some history associated with it before you buy.
Before investing in resale property, you will have carried out the necessary research and inspections to ensure that you’re investing your money wisely in a project that will pay off, and as such you will already know if anything needs repairing within the property. When investing in off-plan property however, investors won’t be able to assess any damages and defects until the property is physically completed. When investing in resale, you can see for yourself any maintenance or repair work that may need doing and can avoid any nasty surprises.
There are a number of distinct advantages to investing in resale property and those who take advantage of them can expect to reap the financial benefits year upon year. Of course, just like with any other property investment, investors should take into consideration a number of factors when purchasing resale property for investment purposes such as location, infrastructure, connectivity links and the prospects of the area as a whole.
Overall, it’s fair to say that resale property offers an abundance of lucrative opportunities and investors should definitely look to resale property when expanding and diversifying their portfolio if they want to turn a substantial profit.
If you would like more information on our range of resale property investments or are looking to sell your investment, feel free to call us on 0161 464 7530 or email us on firstname.lastname@example.org