Buying property from developers before the building has been completed is a very popular choice for a large percentage of property investors in recent years. Called off plan investing, it allows investors to benefit from the discounts on offer and give them the opportunity to take advantage of growth in capital during construction time and ultimately increase their net worth.

Buying off plan typically refers to buying a property that hasn't been constructed yet or is yet to be completed. In this setup, you won't be able to see the finished property before making the commitment to buy. But you will usually be able to take a look at the plans and the graphical representations of the development.

The main reason for buying off plan property is to obtain a discount of approximately 20% off the market value of the property. This is normally possible particularly in an escalating market because the property is just in its construction or pre-construction state at the time of the acquisition. This means that there is an advantage in time while the property is being constructed which usually lasts until construction is finished and the property is ready for occupancy. The advantage in time is dependent on the schedule of construction and can differ from a year or more.

Investors can buy off plan property as a medium- to long-term investment or they can choose to resell it before construction is completed. When the property is already completed, investors can choose to keep it, pay the balance with a mortgage or through their own money and rent the property out.

Off plan property is typically reserved by paying 5-15% deposit before its completion or construction. This allows investors to take advantage of growth in property prices.

It is easy to reserve off plan property because there is no need for a buyer to get a mortgage and he is not required to manage the property or rent it out.

When an investor resells his right to complete on an off plan property before it is completed, he can save on stamp duty (usually 1-4%, depending on the value of the property) normally paid for constructed properties.

Purchasing a new property often gives an investor the advantage of a structural guarantee issued by the National House-Building Council or a similar association.

Investors buy off plan property and take advantage of the stage payment method of funding the build. Some put the property back on the market just as they are about to make the final payment - typically the largest - and subsequently take out all the profit from the expected increase in value that the property has accumulated throughout the period it took to construct it.

Developers typically require buyers to make stage payments throughout the build process. This means that there's no need for you to put down a large one off payment. Thus you can budget and save ahead to have enough money for each payment and you can efficiently secure a high value asset for an extremely low initial capital expenditure.

Investing in off plan property is a great way to increase your property portfolio in a rising market. The key is to make sure you reserve your off plan property at the right price - this involves research and knowledge of the market.