As a primary investment strategy for 75% of investors in Birmingham in 2021, off-plan properties are among the top investments in the town. Investing in off-market properties often yields good returns for investors if they are located in the right location, gain a good amount of rental income and realize a lot of capital gains from the property development.
Investments of any kind are bound to carry certain risks, and off-plan properties in Birmingham investments are no different. For an investment to be successful, investors must have a firm grasp of their expectations and goals before investing in a venture.
An advantage of off-plan properties in the UK is the ability to secure the property at a discounted price before capital appreciation during the construction stage, which gives investors instant equity upon completion.
The off-plan development may be an offbeat choice for everyone, so in this article, we take a closer look at the best off-plan properties to invest in Birmingham and what makes them so appealing.
Key Takeaways
- When investing in the real estate market, it is essential to research the market, the location, and the developer.
- A property off-plan should be seen as a medium- to long-term investment, so there is a better time for fast profits from buying and flipping a property.
- Purchasing a home requires a 25-30% down payment.
What Is Off-Plan Property?
An off-plan real estate investment is buying a property (typically an apartment block or individual unit) before it is built. It is possible to purchase off-plan by paying a reservation fee and a deposit either before construction or during construction, the purpose being that the asset will increase in value after the construction phase has ended once the building has been completed.
A significant time commitment is involved in purchasing off-plan properties during construction, which adds to the overall risk that investors must consider when investing in off-plan real estate.
Three Off-Plan Properties in Birmingham Selling Fast
Hometrack published a report stating that Birmingham is growing faster than any other city, making it clear that Birmingham’s property market is booming. From Birmingham’s leading developer, here are three fantastic investment opportunities.
Summer House, Jewellery Quarter
Summer House is one of the most sought-after off-plan investment properties in Birmingham’s Jewelry Quarter, which offers excellent investment prospects in a district that is becoming increasingly desirable.
Featuring contrasting brick colours and a range of roof forms, Summer House is a modern structure that reflects the local tradition and heritage and yet reflects the modernity of its contemporary architecture.
Located close to Birmingham’s central business district, this high-quality development offers an excellent opportunity for young professionals in Birmingham as they look for an ideal place to live and work.
Quadrant, Birmingham City Centre
The Quadrant is ideally situated for city exploration in the heart of Birmingham’s Jewellery Quarter and Brindleyplace areas, making it a go-to place for new off-plan properties to invest in the UK. It is also just between Birmingham’s Colmore Business District and Birmingham’s Jewellery Quarter, just a few minutes’ walk away.
Moreover, it is conveniently located near Paradise, one of the city’s most significant developments in a very long time. In 2026, when the entire project is completed, Paradise will consist of an impressive 1.8 million square feet of retail, leisure, and hotel space at a height of 181 feet.
CopperBox, Harborne
CopperBox is situated in a prime position in the heart of Harborne, just a few minutes walking distance from Birmingham city center, yet offers all the advantages that come with living in a high-end location. This is the third-most crucial off-plan property in Birmingham, making it an ideal investment for seasoned and experienced investors.
Aside from its bustling cafe culture and thriving restaurant scene, Harborne also houses several sporting clubs, pools, and fitness centers, as well as sports clubs. These facilities have increased the demand for properties, increasing the property price that will benefit investors over time.
There are also plenty of nearby leafy villages, such as Moseley and Kings Heath, for those who enjoy nature, and it is convenient for those who enjoy the outdoors to visit Birmingham’s Botanical Gardens and the Birmingham Zoo.
Why Invest in Off-Plan Properties?
Off-plan properties may be an excellent investment for several reasons. An asset like off-plan property offers the chance to deliver two separate income streams, which makes it a versatile, reliable, and rewarding component of any portfolio. One of the many reasons why purchasing a home off the plan is a smart move. Here is why you should consider investing in off-plan properties in Birmingham.
Discounted rates
The cost of off-plan developments is often lower than market rates, making them an attractive investment. Property developers often mark down a property’s price to encourage buyers to buy it at a discounted price. In particular, at the beginning of the development process.
There is usually an adjustment in the asking price offered by a house builder because they need to sell the units to raise funds for the next development phase, so they are usually open to negotiating.
Exceptional capital growth
With off-market properties in Birmingham, capital growth tends to be higher than on the market. The potential for capital gains increases if you purchase a home for below market value and it’s located in an area where housing prices are increasing.
FAQs
What does off-plan property mean?
Off-plan property refers to a property that has yet to be built for it to be developed into a building. A pre-construction is generally marketed to real estate developers and early adopters as a development, which in turn provides the purchaser with the ability to achieve more favourable financing terms from their lenders once the development is complete.
Is it worth investing in off-plan property in Birmingham?
Due to their lower price points and solid rental yields, these investments have proven excellent investments in the present market. Furthermore, properties on the off-plan market have a greater chance of increasing significantly in value over time in comparison with properties that are already completed.
Peter Juhasz is the founder of Pluxa Property, the biggest property investment company in UK and Group CEO of AIP Capital Group and a property investment expert with over a decade of experience in the UK market.
He built a successful property company using innovative cashflow strategies like Serviced Accommodation and HMOs, scaling to 200 units in four years.
Peter leads a team specializing in property and business acquisitions across various sectors. A former co-host of “Cashflow With Property,” he shares his expertise in real estate investing and business scaling.
He is committed to continuous learning and helping SME owners and investors maximize their returns, driven by his passion for empowering others to achieve their financial goals.
To learn how Pluxa Property can help you in UK property investment, contact our experts.
