Off plan developments Costa del Sol, Marbella properties villas building plots
Buying off-plan can be advantageous as prices are often below market value at the time. The buyer can release equity for the first payment with nothing more to pay until completion. As the property is built, its value increases. There is then the option to sell on before completion and realise a profit.
The developer needs to sell a number of units before building can commence. The bank insures the developer on the basis that a percentage of the development is sold before construction can begin. Discounts are therefore offered because early sales are essential if the developer wants his development to reach completion.
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Only a percentage of the price needs to be invested in order to secure your off-plan property. This is usually 30% of the total price with the balance on completion
If you sell your property during construction you can expect a return on your investment that reflects an increase in the overall current market value of the property while having only ever tied up 30% of the original discounted price. This is the usual route taken by investors to achieve maximum gains on investments and to free up capital to buy their next off-plan property.
As with all investments, timing is important and identifying the best units in the earliest phases of a high quality development in a good location is key to making a sound investment. Buying in the early days leaves ample time for optimum price increases as interest from other investors and homebuyers rises with the brickwork. Upon completion of the show home, your property will become saleable to all those buyers who will only buy something they can see built and furnished.
Many people buy off-plan for their own, later use; they take advantage of market growth and reap the benefit of stage payments. They also prefer to purchase something that has not been previously occupied. For those who don´t want to wait, it is possible to purchase a property bought by an investor and approaching completion.