Positive sides to buying off plan. Hmmm. I've been asked to give my opinion on some cut price resale units in a newish development in Leeds on Monday. Cut price because one of the apartment block investors wants out. That'll be interesting to compare "under market value" of new build resale with "under market value" of off plan.
As you ask, what indeed is resale value? To my mind, the only resale value worth considering is one that gives you a yield comparable to that offered by a bank.
Personally, I rate traditional stock far above new build. We Brits love traditional Victorian terraces. We love a bit of garden or open space to sit out in. Many of us like an original feature and a bit of character.
How much new build inspires me? Well, ok some of the really high-end units, but they are aimed at owner occupiers. Most investors are pushed towards faceless 2-bed units with thin walls and cramped layouts. I always think that the "would I live here myself?" rule should come into play before investing.
I think you are wise to stay sceptical. Scepticism probably doesn't make millionaires but we all know the adage about a fool and his money.
Who knows, maybe I'll come back on Monday full of the joys of Leeds city living but I doubt it!
Michele
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