Buy off-plan - and you will be quids in

By Jill Burdett

Scroll down to the attached links to read how property's that aren't even built yet have made more than £10,000 for their owners, as well as top tips to follow when buying off-plan.

Buying off plan - where you choose the plot and the house type, hand over 10 per cent of the price and wait anything up to eight months before you can move in - is a calculated risk.

But in a strong market, it's the only way to get the house you want.

This year 60 per cent of new home sales in England and Wales were off-plan, according to figures from DTZ Residential. And if you can stand the stress there are benefits. Builders will generally release just a few plots for sale on a new development to gauge interest and get some money in the bank before they start building.

Anyone who reserved a new home worth £100,000 in March will probably just be moving in around now - and with prices increasing this year at 2.5 per cent a month find they now own a property worth nearer £118,000. Not bad.

Even with a slowing market new-build houses bought early in a development tend to rise faster than the national average. And the second phase will almost certainly be priced higher.

Buyers have the latest kitchens and bathrooms in tiles of their choice and magnolia walls to do with what they want. And it may also be possible to slightly alter the internal spec of a house if you get in before a brick has been laid.

The only way to make sure you are buying the right house off plan is to do some homework.

Site plan

Generally, developers only hand out the site plan and details of the house types on the morning that plots go on sale. This makes it almost impossible to make an informed decision about which plot will suit you best.

But detailed plans of the site are available at the local planning office. The developer will have had to submit details of the scheme showing the position of the properties and the site layout to the council. Go along and ask to see it. If possible get your own copy to take away.

Jason Newton, sales director for Redrow Homes North West, said: "The more astute buyers will already have seen the detailed plans at the local authority. They will have studied the site layout and be happy with it."

Once you have identified a couple of suitable plots, go along to the site itself. Several times. At different times of the day. And drive around the periphery of the site.

Ask yourself: what is it next to? If there is open land behind, will it be built on? Check again with the council and ask to see the local area plan which will indicate its future use.

Steve Hogg, new build manager with agents Chestertons, said: "On suburban estates there is usually one, or maybe two, plots that are the prime ones and with a bit of research you can identify them.

"But you can bet that the developer knows exactly which they are as well and they are priced accordingly.

"So the best way is to get the plot that is right for you. And on suburban developments, the two issues are site layout and sun profile.

"The detailed planning is your biggest guide. It will show how many houses are being built, how big the plots are and how the houses lie in relation to each other.

"This is the only way to be ahead of the game. Then visit the site and see how the sun would fall on the plots you fancy.

"Generally, the reason people move to the suburbs is for a garden. What will you use it for? A play area for the children, somewhere to sit and eat or are you a serious gardener? This will probably dictate the potential plots.

"Now look at house types and how they sit within that plot. Is it undersized or oversized? What is car access like and space down the side? Is the garage attached - giving the potential for future extension - or detached?

Building standards

"Where does it sit on the development? A cul-de-sac at the back will be quiet for the children, but you have to drive all the way through to get there.

"A plot on a corner will be riskier for a family and one at the front will have lots of cars driving past. It is all a balancing act of what you want, but if you are clear what you are looking for it is possible to work out from the plan which is the best plot for you."

Then look at other schemes by the developer to check out the building standards and specifications. And look at show homes by other developers to see how the spec compares.

Jason Newton said: "On a site of, say, 40-50 homes we will usually release a number to gauge market interest before the show home is ready.

"It will be six or eight months before the houses are built. In a good market like now, by the time the owners move in the price has increased. So they do get a good deal.

Buying an apartment in a large block in the city is not quite so tense as there are usually a few of each type available. But even so the good ones get snapped up quickly.

At Crosby's Rosetti Place on Quay Street, Manchester, the only duplex apartment with a wrap-around balcony overlooking St John's gardens was snapped up as soon as the plans were unveiled.

William Young, sales and marketing director for Wilson Connolly Lancashire, said: "There are plenty of benefits to buying off plan - and canny buyers know this.

"Probably the most important factor for most buyers is the considerable savings they make. Those in at the beginning are buying at `wholesale prices' while people who wait to see their new home in all its finished glory pay the `retail' price."

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