New Homes (Off-Plan)
Buying off plan is where you buy a property which may not yet be built, for example you may only have visited a show home, seen a model or plan.
The great thing about buying off plan is that sometimes you can choose your bathroom suite, kitchen units, wall & floor tiles and indeed other features which may be included in the price. This is also the ideal opportunity to make any changes or additions to the property that would be more expensive to do so at a later stage, although this obviously costs extra.
Builders are required to take out special bank guarantees that will compensate investors should things go wrong. Before investing in any not-yet-completed project, check on this guarantee.
Guarantees – all new properties in Spain carry a ten year structural guarantee (equivalent to the NHBC in the UK).
Once you are sure that the project is properly guaranteed, your main concern will be the payment schedule. Usually you are required to make a down payment, quickly followed by a substancial payment, with subsequent payments due as the project progresses.
It will be necessary to allow 10% of the purchase price to cover additional costs, which include, lawyers fees, IVA (VAT), Notaries Fees, Registration Fees, Water and Electricity Contracts.