Why buying a property off-plan is attractive for investors


Off-plan buying has not only made a comeback, it is very much back in vogue. Some might ask themselves why someone would buy and begin paying for a property when it is still being built, but to those in the know this is the most advantageous form of property buying – depending on your priorities and main reasons for choosing the home.

Buying to move into

If you’re looking to buy a property to immediately move into an off-plan home is not the ideal option, as you’ll naturally want to find a home that is not only already constructed, but also ready to occupy as soon as you have completed the purchase. A conventional property purchase, where you sell your home and buy a new one to live in, is therefore best suited to this kind of scenario, which is above all typical of what is called a primary housing market – where people buy or rent homes as year-round residences close to their work.

Buying to occupy or sell later

The Costa del Sol is, however, primarily a secondary housing market, where a large proportion of buyers use the property for holidays or certain periods of the year, and not all live here year-round. In other words, many of the properties here are not primary residences but second homes, though the percentage of people living and renting full-time in and around Marbella is certainly growing as the area develops and evolves from a purely tourist destination to the kind of place that attracts professionals and families.

Though many of the people who buy off-plan end up living in the property themselves it is most ideally suited to those looking for a holiday/second home and/or an investment to sell on soon or at a much later date. For people who already have a primary residence it doesn’t matter that the property is being built and will be ready to move in at a later date – and the beauty of off-plan buying is that the sooner you buy, the more chance you have of the home gaining in value before you’ve even opened the front door.

How it works

New developments are built in phases so that property developers spread their financial risk and are also able to manage the construction process better and offer homes that are well-built and finished to high standards. The developers need to own the land and to have sold at least 50% of the properties before they are eligible for bank financing. This improves solvency and provides greater guarantees for buyers, as developers are required to have greater financial reserves.

If you’re early and buy at the first stages of release of the properties, you have the pick of units, orientation and views. Having selected the home and left a deposit you pay the first 40% during the construction phases (the investment made up to this point is bank-guaranteed), while the remaining 60% is paid at the Notary when the property is completed and transferred to your name. By now there is every chance that your home is already worth quite a bit more than you originally paid for it, and of course financing is available for off-plan buying too.

As a specialist in developing and promoting the finest new villas and apartments for sale in Marbella, FM Properties can offer clear answers to all your questions as well as a top selection of modern properties in Marbella, so contact us for more information.

August 2017

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