Buying Off-Plan

With so many new developments on the Costa del Sol it is sometimes difficult to decide which one you should invest your money in. Consider whether you want a golf, countryside, lakeside or coastal development and choose an area. Visit that area and see for yourself how it is being developed. Will there be adequate facilities for your needs? If you are thinking of renting the property out, remember that not every tenant will want to hire a car so consider transport from airport and distance to shops, banks, golf or beach. If you are going to live in the property be certain that it's not just a tourist resort because you will want some peace and quiet during the summer months and be able to enjoy the pool and check that facilities within the development will be open all year round.
Nowadays, developments are luxurious with tropical floodlit gardens, beautiful walkways, secure garages, 24-hour security and many properties are sold with fully-equipped kitchens.
Always remember that you may have uninterrupted views now of the sea, for example, but in a couple of years, the next phase of the development may totally obscure those views. Look at the plans for the entire development, not just the current phase and don't be afraid to ask questions. Although new developments are built to a high standard, do check the specifications.
A new development, undoubtedly, offers value for money and will give you the best return of profit. The earlier in the stage of development you purchase, the cheaper it will be since an average increase could be 15% per year and 30% by completion. All developers must now comply with the new law in Spain and take out an insurance that guarantees completion of the development within a specified time. If they are unable to deliver the property by that date, all monies paid up to that date must be returned to the purchaser.
When you have decided on the property, you will pay 6,000 euros as a holding deposit and within 30 days the contract must be signed and the balance, depending on the developer, of between 10%-30% + 7% IVA (VAT) must be paid. The developers are affiliated to a bank who can offer a mortgage for the remaining 70% to non-residents or you can arrange your own, if required. Some offer stage payments after the initial 10% has been paid provided that 30% has been paid before completion.
Although new builds are unlikely to have debts against them, it is still recommended to use a lawyer for the conveyancing.