What is buying off-plan?
The principle of buying off-plan is not always fully understood. Basically, it involves the purchasing of aproperty that is still to be constructed or is under construction. By buying into a project at such an early stage, the purchaser can secure theproperty for a significantly lower price than theproperty will command when it is completed.
Also, in some cases it is possible to sell theproperty on during construction and realise a profit without having to complete on theproperty. The system is highly popular with investors. As with any form of investment, there is an element of risk, but if you are well informed and choose a goodproperty in an attractive development, buying off-plan can be a very interesting proposition for investors and home owners alike.
What are the reasons for buying off-plan?
The essential reasons that make buying Off-Plan such a good investment are the timing of payments, and the fact that developers are prepared to price below market value before the completion of construction. Aproperty is secured with a small holding deposit and purchased with an initial payment of around 30%, nothing else is due until just before a client is handed the keys. |
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In this way an investor is benefiting from appreciation on the full value of hisproperty during the period of greatest growth, while outlaying only a fraction of the price.
Off-Plan purchases have provided spectacular returns for thousands of investors in Spanish property over recent years. Clients are most suited to an Off-Plan investment when their main priority is return on invested capital, or when they are interested in buying aproperty for their own use and have no short term occupancy requirements. Buying Off-Plan means reserving aproperty on a new development before theproperty is completed, often before construction has started. The developer is obviously very keen to sell as many properties as early as possible to reduce their exposure and to obtain favourable development loans from banks and investors.
Competitive Prices
To expedite sales of properties at this early stage prices are normally extremely competitive as the developer has little to show potential purchasers except architects' plan and artists' impressions of the development. In some cases show apartments may also be available which generally give a good indication of the standard to be expected in the finished product. |
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Join the growing numbers ofproperty investors who have made their capital work harder and achieved extraordinary returns on their capital.
The simple steps to guide you through the buying process.
Spanish Premier properties have written some simple steps to help guide clients through the buying process. Every client has unique needs and requirements. Spanish Premier properties are experts at providing solutions for even the most complex buying process and offer a full range of services, whether directly or through trusted intermediaries.
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Property selection |
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Finance agreements |
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Legal advice |
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Tax advice - UK & Spain |
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Letting services |
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