Off-Plan Property Investment
Buying ‘off-plan’ property and selling before completion. This assumes a 24 month build.
The Purchase Costs
Purchase Price£150,000
IVA Tax£10,500
Total£160,500
Reservation Fee£2,000
30% Deposit£43,000
IVA Tax (30% of total)£3,150
Legal Fees£1,000
Total Deposit£45,000
Total Deposit + Costs£49,150
The Selling Costs
(Selling prior to completion)
Selling Price£225,000
Selling Costs @ 7.5%£16,876
The Gain on Investment
Total Gain = Selling Price − Buying Price − Costs
Total Gain (£225,000 − £150,000 − £16,879)£58,125
% Gain on investment (£58,125 / £49,150)
Gain118%
All figures are for illustration purposes only and are not contractual.