We tell you all the pros and cons of buying a new-build home off-plan.
Buying off-plan can be a very interesting option for younger buyers who don't have the savings for the deposit and aren't in a hurry to move in.
Advantages of buying off-plan
1. Financial savings. It can mean 10% to 15% of the home's final value, because agreeing a price in advance avoids the property's appreciation.
2. Easier payment. When buying off-plan, only 10% of the total price is needed when signing the contract. Another 10% is paid in instalments spread over the construction period.
3. A personalised home. The developer usually lets you make whatever changes are needed to adapt the home to the owners' taste.
4. A more modern development. Naturally, construction will comply with the latest sustainability laws and regulations.
5. Guarantee covering finishing defects, damage caused by defects in construction elements or installations, and a ten-year insurance policy protecting against material damage to the building.
What to consider before buying a home off-plan
At Valoracasa Estate Agents we advise you on what to consider before buying a home this way.
1. Information about the developer.
2. Ownership of the plot.
3. The building permit and the technical certificate.
4. Registration of the building at the Land Registry.
5. Companies Registry certificate to verify the company.
6. Check that the purchase contract includes: price with VAT shown separately, key handover date, penalty for the developer if the handover date is missed, and review the specification of finishes.
Disadvantages of buying a home off-plan
1. Higher prices: as a general rule, new-build homes are more expensive than resale homes.
2. Less supply: there are far fewer off-plan new builds than resale homes, making them harder to get.
3. Possible changes: some developers reserve the right in their contracts to change certain features of the homes due to various complications. In that case, the finishes or specifications may differ from what was originally agreed.
Juan Rosado
CEO
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