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Why should you buy an Off-Plan property?

In essence, buying off-plan simply means buying a house before it’s actually built. While this might sound strange buying an off-plan property can be a smart investment, particularly on the Costa del Sol. Here are some benefits you are likely to reap if you buy an off-plan property.

Advantage of buying off-plan properties

Off plan properties

 

1. You secure purchase below market value

If market prices are going up – as they do most of the time – buying your home before it’s completed means that by the time you move in, it’ll be worth more than what you paid for it.

2. You can buy the property with lower deposits and staged payment

Depending on the seller, some off-plan contracts have the supplementary merit of staged payments. This helps lower the burden of cost and benefits the investor that would otherwise have to deposit a hefty amount. You can pay 30% or 40% of the total price in instalments before the property is completed usually within a period of 18 months.

3. Flexibility

Buying an off-plan property helps you plan your life without pressure. Take the example where you plan on retiring in a couple of years, and you buy your retirement home in Spain as an off-plan property. You can start buying your retirement home today, go through your last year of working stress-free and move into your house just after its completion.

off plan properties

4. Customizable

Whether you plan to live or resell the property, one of the principal advantages of buying an off-plan is to be able to choose and customize most aspects of your next home. Unlike a completed development, you get a chance to select the ideal unit that fits your taste, needs, and budget. You can have the option of personalizing some aspects such as the kitchen, walls, or flooring. It’s essential to have a meeting with the project’s architect so they can answer your questions and propose possible changes.

off plan properties

The buying process of off-plan properties

While sales in resales and New Build remain somewhat stable, off-plan sales have taken off and are growing rapidly. With this off-plan boom in mind, I thought it would be a good idea to publish a gentle reminder on the seven tips new-build buyers should consider.

1- Hire a Lawyer

Once you have found the property you love, my first recommendation is to hire a qualified attorney to assist and guide you throughout the legalities of the purchase process.

2- Due Diligence

Do your due diligence on the developer of the property that you intend to buy. You can get this information from the commercial register and make sure they are correctly registered under the developer’s name. The developer will then provide you with a plan of the property together with a detailed report of an accurate description of the quality specifications of the constructions materials to be used.

3- Land Plan

At this stage, it’s essential to inquire about the land plans of your surroundings in the near future. So you can be aware of any nearby buildings that are likely to obstruct your views. You can find this information in the Town Hall.

4- Building License

Once the developer has been granted the Building License, it is time to formalize the purchase. A Private Purchase Contract (PPC) is to be signed between you and the seller. On a typical scenario, you’ll be required to deposit the 30 or 40% of the property’s price during construction. The remaining 60 or 70% is required once the property is delivered and public deed of sale signed. An essential recommendation is not to sign a Private Purchase Contract unless the town hall where the property is located has issued a Building Licence for the development.

5- Bank Guarantee

Once your lawyer has checked that there is a valid Building Licence granted, it’s time to sign the reservation contract. The instalments paid while the property is under construction are guaranteed by what we call a ‘bank guarantee.’ A bank guarantee acts as a safety net securing all your stage payments, in case the developer fails to finish your property.

off plan properties

6- Snagging List

Once the property is finished and before you sign the Public Deed, you should always make a “snagging list” of the property. It is to determine that everything is in perfect condition and following the quality specifications list issued. You can either draw up the list yourself or appoint one of the many reputable companies that may carry it out on your behalf.

7- First Occupancy License

You should note that the property must have a First Occupancy License (FOL). It is a document dispensed by the Town Hall which confirms that the newly-built property fully matches with all planning and construction regulations and it is ready to be used as a dwelling allowing the purchaser to live in the property legally.

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(Translated from French) We had desires to invest in Spain, but the distance has slowed us down. For several months, we were in contact with several real estate agencies. The one that gave us confidence is The Property Agent held by Mrs. Celeste Alonso. We met an exceptional person through the internet following our research, and I must tell you that we are delighted! This beautiful meeting was decisive; it is a person who proves the real qualities of professionalism. This person took charge of us from beginning to end. Arrived in Spain in Malaga, she accompanied us for visits to different apartments, and we found the rare pearl thanks to Celeste. Mr. and Mrs. Catteau

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Celeste is the reason we bought our property.Her knowledge of the market and her ability to find gems in the residential real estate sector are second to none.Time and again, she has proven to be reliable and extremely trustworthy. She provided us with immeasurable support during the purchase of our property and, most importantly, while we were decorating and renovating our apartment.Celeste’s network of contacts has been invaluable to us and were key enablers in ensuring a smooth purchase and world class after sale care.If you are looking to rent or buy a property, we consider Celeste to be the best at what she does. Don’t settle for anyone else!Five stars!PS: Our dog loves her too!Marzia & Satya -  La Alcaidesa

We decided to work with Celeste from our first conversation by telephone. We liked her approach and very good care of customers. Celeste supported us not only before and during the deal, but also after the deal was successfully completed.Celeste really helped us a lot. We are happy that in Spain we have a great friend of ours!Be sure that we will recommend Celeste like the best Real Estate Agent in Spain.Dana & Andrew - La Alcaidesa

Jo and I would like to thank Celeste for the very professional service that she gave us when we decided to move from France to La Alcaidesa.She was spot on in understanding our requirements and, when we found the right property,  she ensured that the whole conveyancing process went through very smoothly and quickly.But what impressed us was that, after we moved in, Celeste ensured that we discovered all the local services in the area. This was our 5th house move and we can honestly say that she helped to make this the easiest.Mike & Jo - La Alcaidesa  

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