The slight rebound in the Spanish construction market has also brought a change of trend; more and more families decide to buy off plan properties.
It is true that buying an off plan property has advantages, but it is a must to be well informed before carrying out the final signature; the basic information is the history of the promoter, the licenses to work and the register of the land where is going to be built the promotion.
Buy an off plan property is often a good opportunity to buy a home, but do not forget the hidden dangers, so there are several precautions that we must have in order to complete the whole process in a satisfactory manner. The initial phases of these construction processes have sensitive savings for families and investors, thus represent a saving average fluctuating around 4% on the sales already completed, as different promoters said.
It is not the only advantage of an off plan buying. To this substantial discount, we can add better conditions for the buyer payment, as is usually paid 20% of the total price of housing in fees during the buildings construction, to then get a mortgage for the remaining 80%, the maximum that banks usually finance. To this we must add the possibility to custom the new apartments, like certain distribution of the furniture, or choosing more or less luxurious materials in construction; parquet, tiles, etc.
Once analysed the benefits of the off plan buying, let’s see which can be the drawbacks and how to control them.
To start, we need to keep in mind that buying a house is usually the highest economic investment that both families and investors will make in their lives, and paradoxically, in the off plan buying, the decision of the purchase is made before seeing the finished product. This aspect is itself a risk factor, so you have to take certain considerations.
In front of the increasing of sales of this kind of product, realtors and developers have agreed to publish practice guidelines with the best recommendations for all those people who want to buy a house or flat.
The first point to consider is to know everything related to the promoter; who it is, which path has, etc. Once made these investigations, should be reviewed in the Land Registry and in the corresponding City Council that the company has the necessary licenses, building permits and isthe ownership of the land object of construction. Having reached the point of signing the contract, we must read it carefully and consult with an experienced lawyer in this area to verify that there are no uncertain terms that can be a ruin for us.
It is an obligation for every good buyer to require all project information, dates of the works phases, delivery date, payment, final price or the final plans, among others, and the responsible promotion company must provide this information without problems.
And finally, we must demand the quantities proof of what we delivered, to ensure that this money can be used only into implementing the project, and if it is not carried out, that the company have a guarantee or insurance bank to ensure the full repayment of amounts already entered.
J. A.Hernando