`Buying off plan' means a leap of faith because you are buying a property that hasn't yet been built. You are, literally, buying the property off a plan. This `plan' will generally contain details of the layout, the square footage and the specification of the property.

It is the developer's job to tempt you into taking that leap of faith and part with your cash. In order for them to do this, there will generally be a marketing strategy which will involve glossy brochures, high profile advertising, models of the proposed development, computer generated images and an `all singing, all dancing' show flat. The purpose of all this glitz is to make their product look as attractive as possible, in order to lure you into investing in their development.

Why Buy Off Plan?

The principle reason to buy off plan is to achieve a discount of around 20% off the market value of the property. This is generally possible, especially in a rising market, because the property is only in the construction or pre-construction stage at the time of purchase. This will mean that there is a `lead in time' whilst the property is being built, which will last until construction is completed and the property is ready for occupation. This `lead in time', can vary from a year or more, depending on the construction schedule.

How do I know if I am getting the off plan property at a discount?

Research the price of similar properties in the same location. If you consider that the developer is asking too much of a premium for the off plan property, let them know that you have done your homework, researched the area and that you consider their price to be inflated. Be prepared to put in an offer below the asking price - the worst they can do is refuse it and if they don't refuse it, then you've got a property at a reduced price.

If the developer refuses to budge on the price, or offer any incentives to buy, and you genuinely belive the property to be overpriced, then don't buy it. there are always other properties to consider and your aim is to make the correct business secision that will enable you to maximise 'property profit potential'.

Are there any other ways i can secure a discount when buying off plan?

The best time to maximise on any discount possibillaties likely to be offerd is at the beginning of the development. It is then that you get first pick of the units at the best price. This has involved other people queuing outside a development overnight, in order to get the best deals! it is worth considering this if you are optimistic that the development will be a popular ( and are young enough to be able to stand it!. I must admit i have never queued over night but i have been up extra earley and it has enebled me to get some good deals

Consideration:

Although employing someones to queue for you overnight to perchase a property may seem extreme,it is certainley a consideration,if you want to have the pick of the crop at the best price within the development of your choice. If you want a bargin,you will have to put yourself out to get one, as you will not be the only one waiting to buy propertyies below their market value.

Getting in PRE-LAUNCH:

Another way of securing your discount is to 'get in'before the development is officially launched or released. in oreder to do this,it is important to familiarise yourself with estate agents in the erea. Some of the larger agencies will have a direct link with the developer and may well be selling some units off at discounted prices, prior to release. These will be offered to ' preferred' buyers, people who are serious about investing.

Consideration:
Let the estate agent know that you are a serious buyer, unencumbered and able to sucure a morgage . Keep in contact with them and let them know that you are keen thay will put you on there 'hotlist' and inform you when the first units are being sold.

Why would a developer pre-release off plan properties?

A pre-launch is a usefull oppertuinty for the developer to test the water, pricewise. If the pre-launch goes well then you can bet your'en suite bathroom' that they will up the prices for the launch!

Buying at the launch:

By now, the develouper may well have sold some of the units through the ways listed above. This is not always the case and now it really is the mattter of first come first served. If some of the units ahve been pre sold it dousent mean that there isnt good deals to be had when the develoupment is launched to the public. The pre-launch sales may not have got off to a good start if the propertys have been priced too high , or not had the market appeal that the developer had hoped for. If,on the other hand , the pre-launched sales were a sucsess, your negotiating powera at the launch will be reduced and you will have to negotiate hard to get the best deal you can.