The property market environment in America has been characterized by fifteen years of boom and bust, rapidly increasing costs of buying a home as mortgage lenders switch off the taps to potential home buyers and especially first time home buyers find it difficult to venture into the lucrative property market. In addition, the market has often been bombarded by the ever-occurring economic and financial meltdowns, which leads to market speculations that result in poor market performance.

In various states in America, shrewd and discerning property market players have opted not to quit the market but instead, invest in off plan buy-to-let properties, thus generating immense opportunities for buyers and sellers. You can also capitalize on these types of properties and laugh all the way to the bank amid the current unpredictable and volatile market environment.

What Is Buying Off Plan Buy-To- Let Properties?

Buying off plan buy-to-let properties entails buying a property before it is developed at current prices with the expectations that once the development is complete a few years later, the capital values would have appreciated substantially and thereafter, lease it out to generate higher rental yields.

Strong markets have the potential of generating up to 25% from the initial amount of 10% deposit.

Prior to investing in off plan by-to-let properties in America, it is essential that you carry out comprehensive research to ensure that you are more knowledgeable about the property, neighboring areas and prospective rental demand.

Among things that you should take into account before investing in off plan buy-to-let property includes:

1. Location, Location, Location

Understanding the location where the off plan property is situated is perhaps the most important step towards making a wise and a lucrative investment decision.

When researching the location, establish the current and future rental market trends, state of infrastructure, ease in accessing basic amenities such as schools, parks, entertainment areas and hospitals and the potential of the wider area to be regenerated.

There are various ways you can search and research a location including reading web portals, newspaper listings, property news articles and contracting services of a realtor such as Anchorage, Alaska Real Estate agent.

2. The Property

It is critical for you as an off plan property buyer to know more about the property in terms of specifications, particulars and dimensions. This is to ensure that the design, style and type of property you invest in are ideal for the targeted market. For example, a single young professional will have relatively varying home requirements than a large family.

Other things to consider when researching the property is to establish if there will be additional property charges

If possible, always settle on a property that has unique selling points including excellent view and easy access to infrastructure such as roads, rails, energy, water and sewerage

3. The Property Market

You need to assess the prices of local property to establish the past and present market performance in order to have a better picture of what direction the prices will go.

One way of obtaining property market information is by contacting local top realtors such as a Top Realtor in Anchorage, AK, who have better knowledge of the market. You may be required to pay a low fee to acquire their services A market with depreciating prices is a red flag and you should avoid investing in off plan buy to let properties in such a market.