For example, after the pandemic, many citizens decided to change their place of residence. Due to the confinement measures, many people chose to move to homes with more open space and close to nature. They also chose properties with more space and the facility for remote working. One of the main options was to buy off-plan properties.
Here are some factors that will help and guide you in making the best decision. If you are in the process of looking for a home and are interested in buying an off-plan property, this is the place for you! We will provide you with details on how to obtain a property with these qualities, so don't doubt to read on!
Main factors to consider
During 2020, the construction of new residences remained at a standstill for a considerable time due to the crisis caused by the Covid19 virus. However, a year and a half later, the real estate market began to resume its mobility in different parts of the Spanish territory through promotions for the buying of off-plan properties at a convenient price.
From Target Estates International we offer you the factors you should take into account if you are interested in buying a property off-plan:
- Information needed before buying a property off plan. The most important thing is to know the developer and its track record in the real estate market. This way you can check that the seller is the real owner. A good way to do this is to confirm the details of the developer company in the Mercantile Register by registering in the company's NIF (Mercantile Register).
- Bank guarantee of the developer. This factor is particularly important, as the question arises as to how the deposited money is guaranteed until the property is handed over. When the construction of the property sale begins, the developer must go to the bank and open an account to receive the money from the clients during the construction of the property. In this way, the amounts paid are protected against possible cancellation of the construction or if the construction does not meet the agreed deadlines. This bank account is guaranteed by an insurance that confirms the amounts paid on account of the future home. It is important to check the bank guarantee insurance in order to ensure that in case of execution of the same document there is no problem of solvency of the same document.
- Final value of the property and date of delivery. The developer is obliged to submit documents that include the final value of the house, VAT, and the date of delivery of the property. Therefore, we advise you at this stage not to rely on approximate dates, but on fixed dates or prices. It is also very important of course to check the final value, as the development companies set a closed sales price, so that the cost is guaranteed until the moment of delivery.
- Check the plans of the property. As a buyer, you have every right to have access to the plans of the property. These documents offer information on the layout of the property and the total surface area. In this way, you can get an idea of what your future home will be like: the orientation, the luminosity it will have, as well as the communal areas of the building.
- Read the contract carefully. Although it may seem rather obvious. It is worth remembering to read the contract with the developer carefully and in detail when buying off-plan. During this time, you will be able to ask questions and be sure of the clauses of the document before signing.
- Carefully review the documents for the qualities and fittings promised by the developer and included in the purchase price.
Steps to follow to buy a property off plan
1-Choosing a location, starting your search and finding a residence
The first step is to decide where your new home will be located. If you have already decided on the area, then the first thing to do is to research the districts you are interested in and see if they suit your needs and financial solvency.
Once you have the area chosen, you should continue looking for housing. After you have decided on the off-plan property you would like to buy, you will need to contact the developer who will carry out the construction to start the process and information gathering.
Finally, you will need to consider the financing with which you will make the payment. You can opt for a mortgage loan or cash payment (if you have the full amount of the house).
2-Booking the property
Now it is time to make a booking once you have checked the details of the developer you have chosen to buy the property off plan. You will have to pay a deposit as a guarantee of sale. The amount of reservation depends on the type of property, the area where it is located, the type of company and other factors. The total amount of the deposit to be made will depend on the type of property, the area where it is located, the type of company and other factors. The usual deposit percentage is between 7 and 10% of the total value of the property.
3-Signing a bank guarantee
When you make the delivery for the reservation of the property, you will have to sign the bank guarantee. This document certifies the amount of money paid by each client on account throughout the building process. On the other hand, it is what guarantees the total return of the money given by the buyer. This step is of vital importance as it is what will allow you to be sure that, in the event of any unexpected event, cancellation or interruption of the project, your money will be returned.
4-Sign contract of sale
When the deposit for the reservation of the property has been made and the bank guarantee has been signed, the buying and selling contract is signed. This is the agreement between the future owner and the developer. This document will also be used as the basis for the public deed of the transaction. The last one is carried out once the construction stage has been completed. After these steps have been taken, the only thing left to do is to wait for the completion of the construction and the handing over of the keys.
Advantages of buying a property off plan
- Possibility of personalizing your home.
- Follow-up of the building work and first-time occupancy of the property.
- Modern construction.
- Can mean savings and financial flexibility.
- Guarantee in case of cancellation or delay in the delivery of the property.
If you are interested in buying an off-plan property or you are in the process of buying one, do not wait to contact us. Our professionals will accompany and advise you throughout the whole process. You can also visit our website to find out about our new developments and learn more about buying off-plan.