Off-plan property in Spain. A cheaper option than older villas for sale in Spain?
Buying off-plan means you can snap-up some of the best properties, including villas, for sale in Spain before they are even built and at a discounted rate. There are risks to buying off-plan property and if you wish to buy a new-build villa, Spain offers legal protection to the consumer.
Advantages to buying off plan property in Spain
The major advantage of buying off-plan property in Spain is the lower cost compared to existing villas for sale in Spain. The fact the building has not been completed means the developer in Spain must compensate off-plan property buyers for the risks they are taking and to secure finance for the project. This discount can be as high as 25% in some areas of Spain.
Most new-builds in Spain are bought off-plan and all are available for sale in advance. As more properties are sold, the price of the remaining villas rises, so in Spain it pays to be an early bird when buying off-plan property.
Buying off-plan property in Spain should ensure you end up with a sparkling new property that incorporates the latest design techniques and technology. You may well be allowed some input into the decoration of the property although this is largely dependant on the individual developer.
What else should I know about buying off-plan property in Spain?
By law, buyers of off-plan property in Spain are entitled to guarantees against building defects. Guarantees against serious structural problems last for up to 10 years and this is obviously an advantage over older houses or villas for sale in Spain.
Developers are required to take out bank guarantees to compensate investors if they run out of funds before completing the project.
A mortgage will not be available until after the property is built. Builders will expect a deposit of between 15% and 50% and you will need to keep to the schedule of staged payments. You might be required to pay 25% when the basic structure is completed, 25% more when another milestone is reached and so on.
Buying off-plan property in Spain sounds great, are there any risks?
The Costas and other traditional second-home areas are being squeezed ever tighter for land. As a result less heavily developed areas such as Murcia and Granada offer some of the best off-plan investment properties in Spain.
The fact the property has yet to be built creates problems in terms of the delay between buying and moving in. This could be as long as two years, something you need not worry about when looking at existing villas for sale in Spain.
Also, some customers have expressed dissatisfaction that their property does not match expectations. You are entitled to see documentation relating to build specifications and should insist on seeing this before buying off-plan property in Spain.
If you want to buy a villa off-plan then you might well find it cheaper than a villa for sale in Spain which has already been built. You should also be prepared for specific risks which do not apply to other villas in Spain.
