Advantages of Investing in Off-Plan Properties
Why consider purchasing an off-plan property? An off-plan property purchase entails buying a home before the developer completes construction. This kind of investment holds significant appeal, especially on the Costa del Sol at this moment when property prices are clearly increasing. Currently, newly developed villas and apartments are rising all along the coast from Málaga and Torremolinos, Benalmádena, Fuengirola, Mijas, Calahonda and Riviera, Marbella East, Marbella, Benahavís, and all the way to Estepona, Manilva and Casares. Here is a rundown of the benefits you stand to gain from investing in an off-plan property.
Securing a Below-Market Purchase
Timing can be everything. By purchasing your home before it is finished, you stand to gain value as market prices rise. What you pay initially could translate into a property worth more by the time you move in.
Flexible Payment Structure
Many off-plan sale contracts come with the added advantage of staged payments. This can alleviate the financial burden, benefiting investors who might otherwise face a substantial upfront deposit. With the option to pay around 30% or 40% of the total price in instalments over 18 months, this approach is both manageable and financially savvy.
Tailored to Your Needs
The beauty of investing in an off-plan property is the breathing room it offers. Imagine planning your retirement and purchasing your dream home in Spain as an off-plan property. Secure your future today, transition stress-free from your work years, and settle into your new abode upon its completion.
Customization
Whether you intend to live, lease, or resell the property, off-plan purchases offer the unique advantage of customization. Unlike completed developments, you have the freedom to select the perfect unit that suits your preferences, floor level within the building, orientation, size, and budget. This extends to personalizing key features such as the kitchen, walls, and flooring. Consultations with the project's architect facilitate information about which alterations are possible.
The Off-Plan Purchase Process
With off-plan sales gaining momentum, let us walk through the secure steps to this mode of purchase:
Engage a Skilled Solicitor: Upon identifying your ideal property, enlist the services of a proficient lawyer to lead you through the legal purchase process, and conduct due diligence on the property's developer. They will also verify their status in the commercial register ensuring their legitimacy and the smooth progress of construction.
Land Layout Insight: Ask your lawyer to seek information on the land's layout and surrounding structures at the local Town Hall. This knowledge will help you anticipate any potential obstructions to your views.
Construction Approval: Once the Building License is obtained, formalize the purchase with a Private Purchase Contract (PPC). Typically, a 30% to 40% deposit is made during construction, with the remaining balance due upon property delivery and the signing of the public deed of sale. Ensure the town hall has granted a Building Licence before entering a Private Purchase Contract.
Bank Guarantee: Upon confirmation of a valid Building Licence, proceed with the reservation contract. Your staged payments during construction are protected by a 'bank guarantee,' offering security in case of developer failure.
Quality Check Before the Public Deed Signing: Compile a 'snagging list' to ensure the property meets quality specifications and is in pristine condition. PRIVÉEA can assist in this process.
1st Occupancy Approval: Ensure the property holds a First Occupancy License (LPO) from the Town Hall, attesting to its compliance with Town Hall Planning regulations. This means its readiness for legal occupancy and further short-term rentals for instance.
Investing in an off-plan property offers not only the prospect of a strategic real estate investment but also the opportunity to shape your living space according to your preferences. With expert guidance, meticulous legal checks, and a well-structured process, the journey towards off-plan ownership is a secure and rewarding one.
