Let’s do it. Let’s buy a property on the Costa del Sol. I mean it isn’t a hard decision, choosing to leave the dreary permanent Autumn that we seem to enjoy in Britain over the last couple of years. Or maybe, if you find the perfect property, you can make some money renting your villa to those flocking to the Catalan sun each summer.
Let’s be honest, Spain isn’t the problem, is it? The problem is finding the property. Or worse, considering having to buy “off-plan”. Yes, I said it. Off-plan. It is cheaper than buying a brand-new property, but “off-plan,” hasn’t always had the best reputation.
During the recession, buildings were not always seen through to completion, or they were never paid for. No wonder people look at the idea of buying off-plan with a spoonful of scepticism. But hear me out. Buying off-plan might just be the best way to procure that idyllic spot in Spain.
The first benefit to yourselves as property owners, is the price. It is low. Far lower than the competitive market value, and as such, the profit that you will make on this property will be exponentially high. This is obviously helped by a market that is still growing, thus presenting excellent investment potential.
But don’t worry if the market starts to die, or if you change your mind and would like to sell. You can in fact, with most developers, sell your property almost immediately after you have paid your deposit. This does come with a little cautionary advice however.
- You will have entered into a contract with the developer, so no matter if whether you sell or not, you are responsible for the repayments.
- It is advised that you wait a minimum of a year after paying your deposit to allow for capital appreciation. We wouldn’t want you losing any money now, would we?
I suppose one of the main drawbacks when considering “off-plan”, is the waiting. If you don’t wish to wait for up to two years for your property to be ready, then you may be put off.
For some customers, the idea of not being able to see their property before it is built is a major drawback. I could write a poetic flurry of romantic clichés at this juncture, such as “all good things come to those that wait”, or “imagine its potential”. But with a reputable property developer, you can purchase properties at various stages of construction, some of them almost ready to complete and of course, there are show homes available to view. That way you can work out where that tricky bookcase will go, and feel for that perfect homely ambience.
But, if you want a “resale” property because it is cheaper than a new-build, then I doubt I would be able to bribe you to consider off-plan. At least, not on a blogger’s wage I won’t. But be advised, a resale property’s value will not increase as swiftly, nor as much as that of a property bought off-plan. But for those on the fence, it is worth considering it.
If you find the right developer, and the right location, you can choose your design and custom build your future in Spain. There has never really been a better time to invest in brand new property, and for those with their minds on their money, there is unlikely to be a better way than buying off-plan on the Costa del Sol.
XPAT DIRECT REAL ESTATE offers a large selection of OFF PLAN PROPERTY in the following areas: