Off-Plan Property

Off-plan purchase offers investors the ability to buy at the lowest possible price and achieve maximum returns on investment.
Many investors keep their property for a number of years and receive excellent rental income. Meanwhile they can enjoy a beautiful holiday home and watch the value of their property increase steadily.

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Off-Plan Property in France

Many developers of property in France offer beneficial payment schemes. Through the International Property Investment Network (IPIN) we carefully vet these offers and work with only the most reputable and secure development companies that operate in your favoured location. Payment schemes currently on offer allow you to buy property off-plan, ie. before or during construction when the price remains low, with deposits of 5% followed by stage payments to completion.

By the time the property is finished, prices rise due to market forces and the greater general appeal of a completely finished property that is ready to move into. Investors therefore sell the property on to another property purchaser and in doing so, enjoy solid returns of around 10%, whilst never having paid the full purchase price.

Investors should however exercise due diligence and choose wisely, making sure that the property is located in an area where they will resell quickly and easily or where there is a high rental demand for their buy-to-let option. Due to a high demand for rental accommodation both in tourist and residential markets, French property can offer excellent rental yields of 7 – 10%.

Even in the “worst case” scenario, if an off-plan property cannot be sold upon completion, the final balance due can sometimes be financed by the developers themselves. Furthermore, the rental income may pay off the finance of this loan and yield further eventual return on investment.

How can property be cheaper if bought off-plan – How does it work?

In order to limit financial risk and debts, the developers of any project will wish to sell units off-plan. They understand that if buyers cannot see a physical property at the beginning, they will demand a lower price, while relying purely on the developer’s reputation, the property location, artistic impressions and computer simulations on which to base their decision to purchase.
In addition to the excellent off-plan price, some highly beneficial finance structures are in place. You sometimes need to pay only around 20-40% of the purchase price in the form of a deposit, while the rest is payable upon completion. This may be financed by a mortgage if necessary.

If you decide to invest in off-plan property, you will need to decide which strategy you will adopt to achieve your return on investment. Our experts will help you to choose the most appropriate plan, creating an investment programme suitable to your needs, whether this is "pure investment " or a "buy-to-let " strategy. We will also assist you in finding the most appropriate location to suit your investment needs.

Maximizing Profit From Off-Plan Investment in France

The Process of Price Increase

Purchasing early
Prices never remain low for long and, as construction progresses, prices begin to rise steadily. In France, as in any other market, it is important to buy as soon as possible during the early stages of development when prices remain very competitive but are already beginning to rise. Early investors will invariably see the greatest returns.
Purchasing the best units
Early purchase allows investors to choose the most sought after properties on any given development. The best units always offer higher capital appreciation in the smallest time frame and can often demand the greatest rental incomes. Penthouses are often firm favourites.
Price increases as development matures
As the development begins to be constructed, the value of the units begins to rise. A completed show home is normally available for viewing at this stage, while buyers are taking less of a risk as they now do not need to rely completely on plans.
Price appreciates as more units sell
As more units are sold, the price of the remaining units rises. Units sell faster when buyers are able to physically see them. There is often a phase payment structure in place which mirrors the increasing value of the properties. To the early investor this means that, should you decide to sell your property, it will be worth considerably more at this stage than when you made your initial purchase and paid your deposit.

Investors are currently making some excellent choices in key investment areas of France and we are dedicated to helping you to pick the best property options suitable to your particular needs. In this way, you can generate personal wealth through safe and intelligent off-plan investment.