Offplan
in Costa Blanca, Costa Calida and Costa Almeria
Many people buy offplan and there are various advantages
to this, as opposed to buying a resale property. The
property market in Spain continues to expand rapidly
and new build properties are always attractive to prospective
buyers. Indeed, many large investors reserve whole sections
of off plan properties for later resale.
Financially,
the staged payment periods associated with offplan purchase
are attractive as properties can be bought for a low
deposit, with time to organize finance as the development
progresses (deposits are usually protected by bank guarantees
– but this is worth checking prior to committing
yourself to a property and 70-80% mortgage options are
also readily available). Also, once a contract is signed,
the price on your property has effectively frozen and,
by the time the development has been completed, your
property has usually already increased in value by anything
up to 50%.
If you are buying offplan to live in, however, be warned
that completion dates can slip. Whilst in the UK, contractors
are contractually obliged to adhere to completion dates
and LADs (Liquidated and Ascertained Damages) come into
force if completion dates slip, this is not the case
in Spain and it often happens that developments are
a weeks or even a few months late in completing.
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