Off-Plan Property Buying: Step-by-Step Guide

So, you’ve decided you want to invest in off-plan property. You’ve weighed up the pros and cons, but what’s next? When it comes to actually buying property off plan, there are some key steps you’ll want to take.  
 
In this guide, we’ll walk you through these steps, highlighting the dos and don’ts to set you up for a successful investment. 
 
If you haven’t quite made the decision to invest yet, why not read our complete Guide to Off-Plan Property Investment.  

Step 1: Researching where you want to buy  

The first step in your off-plan property buying journey is identifying the right location for your investment. Choosing the right area can greatly impact the profitability of your purchase.  
 
Look for locations that are in high demand—places with strong infrastructure, a good range of amenities like schools, transportation, and entertainment, as well as areas with future growth potential. 
 
It's also important to assess the current property market conditions. Is now the best time to invest? Market fluctuations can affect property values, so staying up to date on trends in your chosen location is key. 
 

Tip: Consider some of the top UK locations for off-plan property investments, such as Birmingham, Leeds, and Manchester, which have seen strong demand and promising growth in recent years. 

Step 2: Researching who you want to buy from  

Choosing the right developer is just as important as choosing the right location. Using a developer with a good reputation should be non-negotiable. A developer with a poor track record could directly impact your finances, which is especially problematic if you’re counting on a specific completion date to start generating returns. 
 

Tip: To minimise the risks, thoroughly research the developer’s past projects. Have they consistently delivered on time? Are their properties built to a high standard? Can you get references or testimonials from previous buyers? 

Step 3: Consider your finances  

It probably goes without saying that buying off-plan property involves having a steady grip on your own financial situation. Knowing how much you can realistically afford to invest will help you avoid potential financial strain. Working with a financial advisor before making the jump may be a smart move to ensure you’re on the right track.  
 

Tip: Look into payment plans offered by your chosen developer. Make sure these plans align with your finances, and you’re factoring in additional costs like stamp duty, legal fees, and maintenance charges.  

 

Step 4: Reserve your property  

Once you've found your ideal property, the next step is to reserve it. This involves paying a reservation fee to secure it, taking it off the market while you finalise your decision.  

The reservation fee is usually refundable, giving you some flexibility if further research leads you to reconsider your purchase.  
 

Tip: Make sure you get a reservation agreement in writing which outlines key details like the terms of the reservation, and timeline for exchanging contracts.  

Step 5: Review the contract thoroughly

After the reservation period, you'll receive the contract for your purchase. It’s important to review the contract thoroughly to ensure everything is as agreed. 
 
The contract should outline all the essential details of your investment, such as:

• The payment schedule
• Projected completion date
• The exact specifications of the property

You'll also want to look out for clauses that cover:

• Potential changes in the property’s specifications
• Delays in the completion timeline
• The possibility of project cancellation

These protect both you and the developer, and are essential for your financial planning and peace of mind. 
 

Tip: Many investors choose to seek legal advice from a solicitor the specialises in off-plan property purchases. A legal professional can help you navigate the contract, and ensure your rights are protected throughout the process. 

Step 6: Exchange contracts  

Once you’re happy to go ahead, it’s time to exchange contracts. This is when you’ll need to pay the initial deposit, which is usually around 10% of the purchase price.  
 

Step 7: Monitor the construction  

Don’t just leave it there after making your purchase. Keep in touch with the developer about progress. Visit the construction site as regularly as you can, to ensure it’s meeting your expectations.  
 

Tip: Be prepared for the risk of delays in completion due to circumstances like weather conditions, or regulatory approvals. For more information on how to prepare for off-plan property risks, read our blog on the topic.  

Step 8: Completion and handover  

Congratulations, your property is complete! Once you’ve arranged final payment, make sure you cover this checklist: 

1. Carry out an inspection of the property to ensure everything is in line with the agreed specifications  
2. Obtain all necessary paperwork  
3. Get your keys  
4. Obtain any warranties  
5. Obtain completion certificates  
    

Tip: Consider hiring a professional snagging company to investigate any defects or issues to be raised with the developer.   

Consider working with a property management company  

Off-plan property buying is an exciting investment opportunity - but it can get complicated. With so many steps and potential risks involved, it’s easy to feel overwhelmed. 
 
This is where working with a property management company is invaluable. A company like The Right Property Group can take the guesswork out of the process, with a team that knows exactly what to watch out for, and the right contacts and experience to turn your off-plan purchase into a profitable investment.  
 
If you’re ready to start your off-plan investment journey, contact The Right Property Group team today to chat through your options.