Buying Off-Plan

A Guide to buying Off-Plan

Maximise the value of your capital and buy safely in Spain and Cyprus

What is buying Off-Plan?

Off-Plan purchases have provided spectacular returns for thousands of investors in Spanish propery 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 a property for their own use and have no short-term occupancy requirements.

Buying Off-Plan means reserving a property on a new development before the property is complete, 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 plans 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.
When considering an Off-Plan purchase it is a good rule of thumb to deal with a major developer with a solid track record in the region where the development is located. It is always reassuring to know that the development company has demonstrated the ability to meet building schedules in the past.

Bank Guarantees - the law

It is a legal requirement in Spain that payments must be fully covered by a bank guarantee. The construction must also have a 10-year insurance cover. These provide investors with peace-of-mind.

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.

A property is secured with a small holding deposit and purchased with an initial payment of around 25-30%. An additional deposit is often payable at the commencement of construction, but nothing else is due until just before the client is handed the keys.

In this way an investor is benefitting from appreciation on the full value of the property during the period of greatest growth, while outlaying a fraction of the price.

Join the growing number of property investors who have made their capital work harder and achieved extraordinary returns on their capital.