Many things have changed in the real estate sector in recent years and one of them is that buyers have once again shown interest in new-build housing and buying off-plan , as it has numerous advantages that make this option an alternative especially attractive.
According to data from the National Institute of Statistics (INE), with more than 565,000 operations last year, the sale of housing has reached figures not seen since 2007. In the case of new-build housing, a total of almost 115,000 transactions were closed , this is 20.3% of the total registered sales, something that has not happened since 2014.
It should be noted that a large part of the new construction sold last year was sold off-plan. For this reason, we would like to tell you about some of its advantages and why it is worth considering this option.
What are the advantages of buying off plan?
One of the options offered by the real estate market to become the owner of a home is to buy off plan. This means that the only information that we are going to have about the property at the time of purchase is that provided by the promoter, since at least two years usually elapse from the start of the works until the delivery of the keys.
If we see it this way, it is normal to think that it is best to buy a home that is already finished or second-hand, however, buying off-plan offers other benefits that we will see below:
Without a doubt, acquiring a brand new home for less than the cost of a new home, but already finished, is the main advantage.
In general, buying a home off-plan can mean an economic saving of up to 15% in the final price with respect to the new construction already finished and ready to deliver. The reason is that, by agreeing on a price at the time of signing the private sales contract, the revaluation or rise in prices that may occur during the execution of the work is avoided.
Before buying a home, it is advisable to have saved between 10% and 15% of the price to pay the costs of the sale. In addition, in the event that the buyer is going to request financing, they must also have 20% of the price that the mortgage does not usually cover. Therefore, this means having savings to cover at least 30% of the value of the home.
In an off-plan purchase, it is usual for the buyer to pay 10% of the final price at the time of signing the private purchase contract and another 10% in installments spread over time while the home is being built. Therefore, this last option offers more flexibility and less financial effort to the buyer.
In addition, by having more time to save, it will be easier to get better mortgage conditions, not to mention that you can obtain tax benefits for the purchase of new construction .
Possibility of choosing housing
Although quick decision-making is key here, since the best homes are usually the first to be sold or reserved, the truth is that buying off-plan gives you the possibility of choosing the home that best suits your tastes or needs, within your price range.
The first thing is to choose the area in which you want to live, for this we recommend that you investigate which districts interest you and which of the new developments that are planned meet your requirements. Once you are clear about this, you should contact the developer company to decide on the plan which will be the home you are going to buy, of those that are available, of course, and start the process of gathering information.
At Gilmar we will be happy to advise you and help you with these procedures so that you can find the perfect home for you.
Another great advantage is that when buying off-plan, most new-build developers offer the possibility of making certain modifications or adaptations to the home based on the preferences of its future owner.
Today, this customization can go far beyond choosing between different materials, since there are many developers that allow changes to be made in the distribution of homes, choosing between an independent or integrated kitchen, and even adding extra equipment such as home automation.
Of course, some of these customizations may entail an additional cost for the buyer, however, this will be less if they are done at this stage than later, once the home has been delivered.
Current technical and construction standards
Acquiring an off-plan flat means betting on a property built with current market materials and that is up to date with the provisions of the Technical Building Code. In other words, it meets the technical and construction standards for insulation, energy efficiency, accessibility, safety, etc.
The advantage is that this can lead to savings on monthly bills and in principle, you can forget about the reforms for a few years.
In addition, new construction homes are usually located in areas with common areas, gardens and services such as a community pool, sports courts, community gym, etc.
ten year warranty
In accordance with the provisions of the Law, once the new home is delivered, three types of guarantees come into force:
- The first guarantee, lasting one year, covers finishing or finishing failures.
- The second, valid for three years, offers protection against damage that does not meet the habitability requirements, caused by construction or installation defects.
- The third: the so-called ten-year insurance. This insurance protects the buyer against material damage caused by vices or defects that affect the foundations, supports, beams, floors, load-bearing walls or any other structural element that directly compromises the mechanical strength and stability of the building.
Being able to benefit from all these advantages is not bad at all, right? If you are looking for a home to buy and after reading this you want to give new construction a chance , at Gilmar we have a large portfolio of properties, including the Ferraz 41 and La Rosaleda developments in Madrid, the Velaya projects , Atalaya Golf and Blue Suites on the Costa del Sol, in addition to the Ice Factory in Las Palmas de Gran Canaria.
Get in touch with our team of real estate consultants and they will help you find the perfect home.
What should you know about buying off plan?
Once the buyer has chosen the house off plan, the next step is to start the purchase process. To do this, the following must be taken into account:
- The buyer must make a first payment as a reservation, which usually ranges between 3,000 and 10,000 euros.
- Once the promoter obtains the building license, the private purchase contract is signed. Then, the buyer must pay the remainder up to 10% of the property price, although as it is a private contract, this amount can be negotiated.
- A series of clauses with the agreements reached between the buyer and the developer will be included in the sales contract. In particular, the payments that the buyer will make during the construction of the property, which normally add another 10% of the price.
- The public deed of sale is signed at the time of delivery of the keys and payment of the remaining 80% of the agreed price, either with own funds or by constituting a mortgage.