Buying an off-plan property in Spain? You better read this!

ABOVE all, get in early on a development that has many advantages, from choice locations to some of the best prices available. Here are my eight key tips.

1. Developments are generally released and built in phases. The earlier ones tend to offer prices well below those of the later phases and the earlier you buy, the lower the cost. By the time a development is completed, the first villas and apartments may often have appreciated in value by up to 25%. That, added to the rental potential of properties on the Costa del Sol, makes buying off-plan attractive to investors and those looking for a holiday home that they can rent for a few weeks a year.
2. Location, location, location! When a phase is released, there is the widest variety of units available. You will be able to choose between all the different villas or apartments, the opportunity to choose the best view or the best proximity to facilities such as restaurants, golf course, gym or lake.
3. You can view the developments in person or, in many cases, through an online tour. Some of these are recorded and include CGI for properties yet to be built, some are held live (if construction has already started) and can give you a very good idea of ​​the development, facilities and views.
4. During a viewing, you’ll learn about the fixtures and accessories you can choose from to finish off each property. Some properties have a range included in the price, for others you can choose to upgrade to have exactly what you want at additional cost.
5. So you’ve finally seen the one? It is time to visit an independent lawyer who will review the contract and explain the terms, including the delivery date of the finished property, guarantees and the final price. Once you are satisfied with the terms, you can sign the contract and pay a deposit to secure the property. It is usually €6000.
6. At this stage you can apply for your NIE (Foreigner Identity Number, which translates as Identification Number for Foreigners). The NIE is your identification and tax identification number in Spain. You need it for everything that involves any official procedure in Spain. For example, to buy a property, buy a car, connect to public services and pay your taxes.
7. Prior to completion, you will have the opportunity to ensure that the build is complete and any hook-ups have been made. On completion, the balance of the purchase price is due and your solicitor can register the property in your name.
8. The Spanish government requires all developers to have a bank guarantee to cover the payments you make. In the unlikely event that a developer doesn’t finish the project, your money is safe.

If you want to know more, we will be happy to talk to you at the Spanish real estate agency. Our head office is in Estepona and we are in www.thespanishestateagent.com

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